What is the difference between the compound interests on Rs 5000 for 1 1 2 nbsp years at 4 per annum......

Quant ( MASTER) Compound Interest Add to Study Deck

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?

3.04

2.04

4.04

5.04

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

Hence, option 2 is the correct answer.

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