Arithmetic Ability
Compound Interest

109 / 134

Q.

What is the difference between the compound interests on Rs. 5000 for 1 1/2  years at 4% per annum compounded yearly and half-yearly?

View Answer

Correct choice: A

Explanation:

C.I. when interest compounded yearly=rs.[5000*(1+4/100)(1+1/2*4/100)] = Rs. 5304. C.I. when interest is compounded half-yearly=rs.5000(1+2/100)^3 = Rs. 5306.04 Difference = Rs. (5306.04 - 5304) = Rs. 2.04
109 / 134