Explanation:

To determine the difference between the compound interest in the 2nd and 3rd years, we'll calculate the compound interest for each year.

- Initial Amount: Rs 4,000

- Interest Rate: 10% annually

1. Calculate Amount at End of 1st Year:

- A1 = P(1 + r)^1 = 4000(1 + 0.10) = Rs 4,400

2. Calculate Amount at End of 2nd Year:

- A2 = P(1 + r)^2 = 4000(1 + 0.10)^2 = Rs 4,840

- Interest for 2nd Year: A2 - A1 = 4,840 - 4,400 = Rs 440

3. Calculate Amount at End of 3rd Year:

- A3 = P(1 + r)^3 = 4000(1 + 0.10)^3 = Rs 5,324

- Interest for 3rd Year: A3 - A2 = 5,324 - 4,840 = Rs 484

4. Difference between 3rd Year and 2nd Year Interest:

- Difference = 484 - 440 = Rs 44

- Correct Option:

- Option 4: Rs 44.00