Multiple Choice Questions

What is the difference between the compound interest on Rs10 000 for years at 4 per annum compounded...........

Quantitative Aptitude (CHSL) Compound Interest

What is the difference between the compound interest on Rs10,000 for years at 4% per annum compounded yearly and halfyearly?

This questions was previously asked in

SSC CHSL 30th May 2022 Shift-2

Rs4.80

Rs5.01

Rs6.02

Rs4.08

- For compound interest, the formula used is A = P(1 + r/n)^(nt), where:

- A = final amount

- P = principal amount

- r = annual interest rate

- n = number of times interest applied per time period

- t = number of time periods the money is invested for

- Compounded Yearly:

- P = Rs10,000, r = 4% (0.04), n = 1, t = 2 years.

- A = 10000*(1 + 0.04/1)^(1*2) = 10000 * (1.04)^2 = Rs10,816.

- Compounded Half-Yearly:

- P = Rs10,000, r = 4% (0.04), n = 2, t = 2 years.

- A = 10000*(1 + 0.04/2)^(2*2) = 10000 * (1.02)^4 = Rs10,824.32.

- Difference:

- Difference = Rs10,824.32 - Rs10,816 = Rs8.32.

- The closest option to Rs8.32 is not listed, yet based on calculations, Option 3 (Rs6.02) is the nearest but not exact.

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