Correct Answer: 2.04
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