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Question

The difference between simple interest and compound interest on ₹ 2400 for one year at 8% per annum compounded half-yearly is ₹ 3.84.


  1. True

  2. False


Solution

The correct option is A

True


For Simple Interest

Given P = ₹ 2400, R = 8 % and T = 1 year 

S. I = PRT100

      = 2400×8×1100 = 192

Interest  is compounded half yearly.

Given P = ₹ 2400    ; R = 8 % and  T = 12 year 

Hence  C.I  for the first half year is given by

 C. I  = PRT100

        =  2400×8×12×100 = 96

For the second part of the year or second half year ,

 P = 2400 + 96 = 2496

Hence C. I for the second half year is given by,

C.I = PRT100

     =    2496×8×12×100 = 99.84

Hence the total C.I = ₹ ( 96 + 99.84) 

                              = ₹ 195.84

Difference between C. I and S. I = ₹ 195.84 - ₹ 192 

                                                    = ₹ 3.84

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