Find the difference between compound interest on rs 4000 at the rate of 8% per annum compounded half yearly and the compound interest at 8% per annum compounded annually for two years
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Answered by
18
Compound interest when compounded half yearly:
interest rate for 6 months = 8/2 = r = 4%
number of times compounded = n= 4 in 2 years
C I = P (1+ r/100)^n - 4000 = 4, 000 (1 + 0.04 )^4 - 4000
Compound interest when compounded yearly
interest rate for 12 months = r = 8%
number of times compounded = n= 2 in 2 years
C I = P (1+ r/100)^n - 4000 = 4, 000 (1 + 0.08 )^2 - 4000
Difference = Rs 4,000 [ 1.04^4 - 1.08^2 ]
= Rs 4, 000 * 0.00345856 = Rs 13.83
interest rate for 6 months = 8/2 = r = 4%
number of times compounded = n= 4 in 2 years
C I = P (1+ r/100)^n - 4000 = 4, 000 (1 + 0.04 )^4 - 4000
Compound interest when compounded yearly
interest rate for 12 months = r = 8%
number of times compounded = n= 2 in 2 years
C I = P (1+ r/100)^n - 4000 = 4, 000 (1 + 0.08 )^2 - 4000
Difference = Rs 4,000 [ 1.04^4 - 1.08^2 ]
= Rs 4, 000 * 0.00345856 = Rs 13.83
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Answered by
1
Answer:
Step-by-step explanation:
For 1st year
P = Rs. 4000
R = 8
T = 1 year
Selina Solutions Icse Class 9 Mathematics Chapter - Compound Interest Without Using Formula
A = 4000 + 320 = Rs. 4320
For 2nd year
P = Rs. 4320
R=8%
T = 1 year
Selina Solutions Icse Class 9 Mathematics Chapter - Compound Interest Without Using Formula
A = 4320 + 345.60 = 4665.60
Compound interest = Rs. 4665.60 - Rs. 4000
= Rs. 665.60
Simple interest for 2 years = Selina Solutions Icse Class 9 Mathematics Chapter - Compound Interest Without Using Formula
= Rs. 640
Difference of CI and SI = 665.60 - 640
= Rs 25.60
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