Question

Find the difference between the compound interests on Rs.5000 for (3/2) years at 4% per annum compounded yearly and half-yearly?

• A. Rs.2.04
• B. Rs.4.08
• C. Rs.8.30
• D. Rs.4.60
• E. Rs.1.02

Answer 1

The correct option is A

Rs.2.04

$A=5000(1+\frac{4}{100})(1+\frac{2}{100})$

$=Rs.5304$

$A=5000(1+\frac{2}{100}{)}^3$

$=Rs.5306.04$

$Difference=Rs.2.04$