Maths · Arithmetic and Geometric progressions
What is the, difference between the compound interests on Rs. 5,000 for years at
What is the, difference between the compound interests on Rs. 5,000 for \( 1 \frac{1}{2} \) years at \( 4 \% \) per annum compounded yearly and half-yearly?
- A. Rs. 2.04
- B. Rs. 3.06
- C. Rs. 4.80
- D. Rs. 8.30
Step-by-step solution
For yearly compounding: Amount = 5000 * (1+0.04) * (1+0.04*0.5) = 5304, CI = 304. For half-yearly compounding: Amount = 5000 * (1+0.02)^3 = 5306.04, CI = 306.04. Difference = 306.04 - 304 = 2.04.
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