C

Chandani • 10.97K Points
Tutor II Math

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

  • (A) 2.04
  • (B) 3.04
  • (C) 4.04
  • (D) 5.04
  • Correct Answer - Option(A)
  • Views: 261
  • Filed under category Math
Explanation by: Chandani
C.I. when interest
compounded yearly=rs.[5000*(1+4/100)(1+1/2*4/100)]
= Rs. 5304.
C.I. when interest is
compounded half-yearly=rs.5000(1+2/100)^3
= Rs. 5306.04
Difference = Rs. (5306.04 - 5304) = Rs. 2.04

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