a person deposited 60,000in bank X for 2 year at 10 %annual compound interest.But after one year bank has changed the policy and decided to pay semi annual , compound interest at same rate. what is the percentage difference between the compound interest of the first and second year?give reason with calculation
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case1
p= rs 60000
time= 2 yr = 24 months
n=1
r%=10%
a= p[1+r/100]^n
=60000[1+10/100]^1
= rs 65000
case2
p=rs 65000
n=2
r%=10%
a=65000[1+10/100][1+10/100]
=rs 78650
p=60000[1+10/100]^2
=rs 72600
change in ci=rs (78650-72600)
= rs 6050
difference%=6050/72600*100%
=8.33333%
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