Question

find the difference between the compound interest on 5004 11 whole 1 by 2 years at 4% and according as the interest is paid yearly on half yearly​

Answer 1

Answer:

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What is the difference between the compound interests on Rs. 5000 for 1

2

1

years at 4% per annum compounded yearly and half-yearly ?

Easy

Solution

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Correct option is

A

Rs. 2.04

C.I yearly

Principal=5000 Rs.

Time =1.5 years

Interest rate=4 %

Amount=5000(1+

100

4

)(1+

100

2

)

⇒5000×

100

104

×

100

102

⇒5304Rs.

Then C.I=5304−5000=304Rs.

C.I.half yearly

Principal=5000 Rs

Time=1.5 years=3 quarter

Rate =4%

Amount=5000(1+

100

2

)(1+

100

2

)(1+

100

2

)

⇒5000×

100

102

×

100

102

100

102

⇒5306.40

Then C.I=5306.40−5000=306.04

Diference between C.I.=306.04−304=2.04Rs.