find the difference between the compounded interest on Rs 4000 at 8% per annum compounded half-yearly and the compound interest at 8% per annum compounded annually for 2 years ?
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Answer: 13.93424
Explanation:
Compounded Half Yearly:-
amount - principle = interest
amount = principle (1+rate of interest*1/2)^2*number of years
=4000(1+8/200*1/2)^2*2
=4000(208/200)^4
=4000*208/200*208/200*208/200*208/200
=4679.43424
amount - principle = interest
4679.43424-4000=679.43424
Compounded Annually:-
amount-principle=interest
amount = principle (1+rate of interest)^ number of years
=4000(1+8/100)^2
=4000(108/100)^2
=4000*108/100*108/100
=4665.5
amount - principle = interest
4665.5 - 4000 = 665.5
Difference Of Both Interests:-
679.43424 - 665.5 = 13.93424
Answer = 13.93424
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