Question

find the difference between compound intrest on rs 8000 for one and half years at 10 percent p.a compounded yearly and half yearly

Answer 1

Answer:

Rs 21

Step-by-step explanation:

P = 8000

Rate of interest = 10 % per annum

or 5 % half yearly

Time = n =  1.5 years  = 3 * 0.5 years

when compounded Half yearly

Interest for 1.5 years  =  8000 * (1 + 5/100)³  - 8000

= 8000 ( 1.05³ - 1)

= 1261

when compounded yearly

Interest for 1st Year = 8000 ( 1+ 10/100)¹ - 8000 =  800 Rs

now Principle become = 8000 + 800 = Rs 8800

interest for 0.5 years = 8800 * 10 * 0.5/100  = 440 Rs

Total interest = 800 + 440 = 1240 Rs

difference between compound interest = 1261 - 1240 = Rs 21