Question

What is the difference between the compound interest on ₹ 5000 for 1 2/2years at 4%per annum compounded yearly and half-yearly?.......
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Answer 1

Answer:

C.I yearly

Principal = 5000 Rs.

5000 Rs.Time =1.5 years

5000 Rs.Time =1.5 yearsInterest rate = 4%

Amount = 5000 (1 + 4 ) (1 + 2 )

100 100

= 5000 × 104 × 102

100 100

5304Rs.

Then C.I = 5304 − 5000 = 304Rs.

04Rs.C.I.half yearly

Principal = 5000 Rs

Time = 1.5 years = 3 quarter

3 quarterRate = 4%

Amount = 5000 (1 + 2 ) ( 1 + 2 ) ( 1 + 2 )

100 100 100

= 5000 × 102 × 102 102

100 102 100

5306.40

Then C.I = 5306.40 − 5000 = 306.04

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

Answer 2

Answer:

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