If the interest of a certain sum for the first year at

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If the interest of a certain sum for the first year at 8% p.a. compound interest is Rs. 48. What will be the interest for the second years ?

1. Rs. 52.55
2. Rs. 51.84
3. Rs. 58.60
4. Rs. 53.04

Correct Option: B

S.I. or C.I. for first year are always equal
Principle = (S.I. x 100)/(Rate x Time)
= (48 x 100)/(8 x 1) = Rs. 600
Interest for second year = Amount of second year - Amount of the first year
= 600 (1 +8/100)² - 600(1 +8/100)
= 600(27/25)² - 600(27/25)
= 600(27/25) {27/25 - 1}
= 600(27/25) (2/25)
= Rs. 51.84