Question

find the difference b/w the compound interest on Rs. 120000 for 1 year at 20t. per annum annum when compounded half yearly and quarterly​

Answer 1

Answer:

Step-by-step explanation:

R = 20% pa

or 10% = 1/10

or 5% = 1/20

T = 1 year

120000 half year = 12000

120000 another half year = 12000

CI = 25200

120000 quarterly = 6000 in each quarter

A = 120000*(1 + 5/100)^4

A = 145860.75

CI = 25860.75

Difference in CI in the two cases

= 25860.75 - 25200

= 660.75