find the difference in compound interest on rupees 5000 for 1 year at the rate of 8% per annum if in the first case interest is paid annually and in the second case semi annually
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Answered by
35
Dear Student,
◆ Answer -
Total = Rs 8
● Explanation -
For interest paid annually,
Total = P (1 + r)^t
Total = 5000 (1 + 8/100)^1
Total = 5000 × 1.08
Total = 5400 Rs
For interest paid semiannually,
Total = P (1 + r)^t
Total = 5000 (1 + 4/100)^2
Total = 5000 × 1.04^2
Total = 5000 × 1.0816
Total = 5408 Rs
Hence, the difference in compound interest annually and semiannually is 5408-5400 = Rs 8.
Thanks dear. Hope this helps you...
Answered by
3
2nd case-1st case=408-400
=8 rupees
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