Question

What is the difference between compound interest on 5000 for 1 and half years at 6% per annum according as the interest is compounded yearly and half-yearly and hundred yearly an thousand yearly?

Answer 1

Amount after 11⁄2 years when interest is compounded yearly 

=5000×(1+4100)1×⎛⎜ ⎜⎝1+12×4100⎞⎟ ⎟⎠=5000×104100×(1+2100)=5000×104100×102100=50×104×5150=104×51=Rs. 5304=5000×(1+4100)1×(1+12×4100)=5000×104100×(1+2100)=5000×104100×102100=50×104×5150=104×51=Rs. 5304


Compound Interest for 1 1⁄2 years when interest is compounded yearly 
= Rs.(5304 - 5000)

Amount after 11⁄2 years when interest is compounded half-yearly 

=P(1+(R/2)100)2T=5000(1+(4/2)100)2×32=5000(1+2100)3=5000(102100)3=5000(102100)(102100)(102100)=50×102×5150×5150=102×51×5150=51×51×5125=Rs. 5306.04=P(1+(R/2)100)2T=5000(1+(4/2)100)2×32=5000(1+2100)3=5000(102100)3=5000(102100)(102100)(102100)=50×102×5150×5150=102×51×5150=51×51×5125=Rs. 5306.04

Compound Interest for 1 1⁄2 years when interest is compounded half-yearly 
= Rs.(5306.04 - 5000)

Difference in the compound interests = (5306.04 - 5000) - (5304 - 5000) = 5306.04 - 5304 = Rs. 2.04

Answer 2

2. 05 ...........

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