Discussion :: Compound Interest
-
What is the difference between the compound interests on Rs. 5000 for 1\(\frac { 1 } { 2 } \) years at 4% per annum compounded yearly and half-yearly?
Answer : Option A
Explanation :
C.I. when interest compounded yearly =Rs= [5000\( * [1+\frac { 4 } {100 }] *\)[1+\( \frac { 1/2*4 } {100 })]\)
Rs=[5000\(* \frac { 26 } { 25 }\)\(* \frac { 51 } { 50 }\)]
Rs=5304.
C.I. when interest compounded half-yearly =Rs.[5000\( (1+\frac { 2} {100 })^3]\)
=RS.[5000\(* \frac { 51 } { 50 }\)\(* \frac { 51 } { 50 }\)\(* \frac { 51 } { 50 }\)]
=RS.5304.04
Difference = Rs. (5306.04 - 5304) = Rs. 2.04
Be The First To Comment