The difference between compound interest and simple interest on a sum for two years at 8% per annum, where the interest is compounded annually is Rs.16. if the interest were compounded half yearly , the difference in two interests would be nearly

For 1st year S.I =C.I.

Thus, Rs.16 is the S.I. on S.I. for 1 year, which at 8% is thus Rs.200

i.e S.I on the principal for 1 year is Rs.200

Principle =  R s . 100 * 200 8 * 1 = Rs.2500

Amount for 2 years, compounded half-yearly

  R s . 2500 * 1 + 4 100 4 = R s . 2924 . 4

C.I = Rs.424.64

Also,  S . I = R s . 2500 * 8 * 2 100 = R s . 400

Hence, [(C.I) - (S.I)] = Rs. (424.64 - 400) = Rs.24.64