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In compound interest, the difference between interests earned in two consecutive years is the interest earned on the interest of the previous year. So, the difference between interest earned in the second and third years: = 8,640 - 7,200 = Rs. 1,440 So, rate of interest = (1,440/7,200) × 100 = 20% Therefore, interest earned in the fourth year = 8,640 × 1.2 = Rs.10,368
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