Question

7. Radha deposited Rs 2000 in a Finance Company which pays compound
interest at the rate of 10% per annum, compounded annually. On the same
day Sudha deposited Rs 2000 in another Company which pays the
compound interest at 10% per annum but compounded semi-annually,
Who gets more amount at the end of 2 years and by how much?
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Answer 1

Answer:

Radha would get more intrest by ₹215

Step-by-step explanation:

Radha's case-

principal-₹2000

rate of interest-10%

time-2 years

amount when C.I. is calculated annually- P(1+R/100)^2

so, 2000(1+10/100)^2

2000(110/100)^2

2000(110/100)*(110/100)

=2420

hence Radha would get ₹2420 after 2 years

Sudha's case-

principal-₹2000

rate of interest-10%

time - 2 years

amount when C.I. is compounded half yearly

- P(1+(R/2)/100)^n

= 2000*(1+(10/2)/100)^2

=2000*(1+5/100)^2

=2000*(105/100)^2

=2000*(105/100)*(105/100)

=2205

hence,Sudha will get ₹2205 after 2 years

2420-2205=215

hence Radha would get more intrest by₹215