A sum of ₹ 20,000 is lent at 12% compound interest compounded yearly. The compound interest accrued in the second year will be :

1. ₹ 4800

2. ₹ 288

3. ₹ 2688

4. ₹ 5088

For first year :

P = ₹ 20,000

R = 12%

T = 1 year

By formula,

Interest = $\dfrac{P \times R \times T}{100}$

Substituting values we get :

Interest = $\dfrac{20000 \times 12 \times 1}{100}$ = ₹ 2400.

Amount = P + I = ₹ 20,000 + ₹ 2400 = ₹ 22400

For second year :

P = ₹ 22400

R = 12%

T = 1 year

By formula,

Interest = $\dfrac{P \times R \times T}{100}$

Substituting values we get :

Interest = $\dfrac{22400 \times 12 \times 1}{100}$ = ₹ 2688.

Hence, Option 3 is the correct option.