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

  • 1
    Rs. 1.80
  • 2
    Rs. 2.04
  • 3
    Rs. 3.18
  • 4
    Rs. 4.15
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Answer : 2. "Rs. 2.04"
Explanation :

Answer: B) Rs. 2.04 Explanation: Compound Interest for 1 1⁄2 years when interest is compounded yearly = Rs.(5304 - 5000) Amount after 11⁄2 years when interest is compounded half-yearly Compound Interest for 1 1⁄2 years when interest is compounded half-yearly = Rs.(5306.04 - 5000) Difference in the compound interests = (5306.04 - 5000) - (5304 - 5000)= 5306.04 - 5304 = Rs. 2.04

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