Multiple Choice Questions

What will be the difference in compound interest on a sum of Rs 7 800 at 8 for 1 year when the inter...........

Quantitative Aptitude (CGL) Compound Interest

What will be the difference in compound interest on a sum of Rs 7,800 at 8% for 1 year, when the interest is paid yearly and half

yearly?

This questions was previously asked in

SSC CGL 6th March 2020 Shift-1

Rs 29.18

Rs 12.48

Rs 24.72

Rs 19.46

- Yearly Compounding:

- Principal = Rs 7,800.

- Interest Rate = 8% per annum.

- Compound Interest for 1 year = Principal × (1 + Rate/100)^n - Principal

- CI (yearly) = 7,800 × (1 + 8/100)^1 - 7,800 = Rs 624.

- Half-yearly Compounding:

- Principal = Rs 7,800.

- Interest Rate = 8% per annum, which is 4% per half-year.

- Compound Interest for 2 periods = Principal × (1 + Rate/2/100)^2n - Principal

- CI (half-yearly) = 7,800 × (1 + 4/100)^2 - 7,800 = Rs 636.48.

- Difference:

- Difference in CI = Rs 636.48 - Rs 624 = Rs 12.48.

- Correct Answer:

- Option 2: Rs 12.48

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