The difference between the simple interest and compound interest compounded half-yearly at a rate of 5% p.a. for 6 months on a deposit of ₹ 5000 will be equal to 0.
The difference between the simple interest and compound interest compounded half-yearly at a rate of 5% p.a. for 6 months on a deposit of ₹ 5000 will be equal to 0.
The correct option is A 0
We know that S.I. = PRT100
where, S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years).
Simple interest on a deposit of ₹ 5000 at a rate of 5% p.a. for 6 months is ₹ 125.
Compound interest on ₹ 5000 at a rate of 5% p.a. for 6 months, compounded half-yearly is again ₹ 125 [ = 5000×(1+52×100)1 ].
Hence simple interest and compound interest are same for 6 months when compounded half yearly for the same sum and at the same rate per cent. Therefore, in this case, the difference between simple interest and compound interest is 0.
0
We know that S.I. = PRT100
where, S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years).
Simple interest on a deposit of ₹ 5000 at a rate of 5% p.a. for 6 months is ₹ 125.
Compound interest on ₹ 5000 at a rate of 5% p.a. for 6 months, compounded half-yearly is again ₹ 125 [ = 5000×(1+52×100)1 ].
Hence simple interest and compound interest are same for 6 months when compounded half yearly for the same sum and at the same rate per cent. Therefore, in this case, the difference between simple interest and compound interest is 0.
