What is the difference (in Rs.) between the interests on Rs. 50,000 f…

Question

What is the difference (in Rs.) between the interests on Rs. 50,000 for one year at 8% per annum compounded half yearly and yearly?

Accepted Answer

Option A. 80. Answer & Solution Answer: Option A Solution: & 1 year CI = 1 year SI & SI = P × R × T100 & = 50000 × 8 × 1100 & = 4000 & Compound interest at half yearly & Rate = 8/2 = 4\% & Time = 1 × 2 = 2 years & A = P ( 1 + R100 )^n & A = 50000 ( 1 + 4100 )^2 & A = 50000 × 104100 × 104100 &…