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Discussion :: Compound Interest

  1. What is the difference between the compound interests on Rs. 5000 for 112 years at 4% per annum compounded yearly and half-yearly?

  2. A.

    Rs. 2.04

    B.

    Rs. 3.06

    C.

    Rs. 4.80

    D.

    Rs. 8.30

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    Answer : Option A

    Explanation :

     C.I. when interest compounded yearly   =Rs= [5000[1+4100][1+1/24100)]

                                                                 

                                                                     Rs=[500026255150]

                                     

                                                                      Rs=5304.

     

     C.I. when interest compounded  half-yearly =Rs.[5000(1+2100)3]

                                           

                                                                       =RS.[5000515051505150]

                                           

                                                                      =RS.5304.04

     

           Difference = Rs. (5306.04 - 5304) = Rs. 2.04


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