What is the difference between the compound interests on Rs. 5000 for…

Question

What is the difference between the compound interests on Rs. 5000 for 11/2 years at 4% per annum compounded yearly and half-yearly?

Accepted Answer

Option A. Rs. 2.04. Answer & Solution Answer: Option A Solution: & C .I .\, when\, interest\, compounded\, yearly & = Rs. [ 5000 × ( 1 + 4100 ) × ( 1 + 1/2 × 4100 ) ] & = Rs. ( 5000 × 2625 × 5150 ) & = Rs.5304 & C .I .\, when\, interest\, in\, compounded\, half - yearly & = Rs.\, [ 5000 × ( 1 + 210…