What is the difference between compound interest on 5000 for 1 and half years at 4% per annum according as the interest is compounded yearly and half-yearly?
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total amount after 1 ½ years when interest is compounded yearly.
= P(1 + r/100)¹× (1 + r/200)
= 5000(1 + 4/100) × (1 + 4/200)
= 5000(1 + 0.04)(1 + 0.02)
= 5000 × 1.04 × 1.02
= 5304 Rs.
so, compound interest = 5304 - 5000 = 304 Rs.
total amount after 1 ½ years when interest is compounded half yearly.
= P(1 + r/200)²ⁿ
= 5000(1 + 4/200)^(2 × 3/2)
= 5000(1 + 0.02)³
= 5000(1.02)³
= 5306.4 Rs.
compound interest = 5306.4 - 5000 = 306.4 Rs.
so, difference between them = 306.4 - 304 = 2.04 Rs.
Answered by
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Answer:
2.04 is your answer hope it helps you
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