What is the difference (in Rs.) between the compound interests on Rs. 4000 for 1 year at 12% per annum compounded yearly and half - yearly?
What is the difference (in Rs.) between the compound interests on Rs. 4000 for 1 year at 12% per annum compounded yearly and half - yearly?
1). 14.4
2). 12.4
3). 10.4
4). 16.4
2 answers
Compound interest if it was compounded annually can be given as
⇒ CI = 4000{(1 + 12/100) - 1}
⇒ CI = 480
Compound interest if it was compounded half yearly can be given as
⇒ CI = 4000{(1 + 6/100)2 - 1} = 4000{(1.06)2 - 1}
⇒ CI = 4000 × 0.1236 = 494.4
So, difference = 494.4 - 480 = 14.4
Compound interest if it was compounded annually can be given as
⇒ CI = 4000{(1 + 12/100) - 1}
⇒ CI = 480
Compound interest if it was compounded half yearly can be given as
⇒ CI = 4000{(1 + 6/100)2 - 1} = 4000{(1.06)2 - 1}
⇒ CI = 4000 × 0.1236 = 494.4
So, difference = 494.4 - 480 = 14.4
Other Questions
3. Find the simple interest 0n Rs.3000/- at 5 1/3% p.a. for 2 ½ years?