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What is the difference between the compound interests on Rs. 5000 for 112 years at 4% per annum compounded yearly and half-yearly?

Correct Answer: Rs.2.04

Explanation:


 C.I. when interest compounded yearly


R s . 5000 * 1 + 4 100 * 1 + 1 2 * 4 100


  R s . 5000 * 26 25 * 51 50


=Rs.5034


 


C.I. when interest iscompounded half-yearly 


  R s . 5000 * 1 + 2 100 3


= Rs. 5306.04


Difference = Rs. (5306.04 - 5304) = Rs. 2.04


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