What is the difference between the compound interests on Rs. 5000 for 112 years

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Question
What is the difference between the compound interests on Rs. 5000 for 112 years at 4% per annum compounded yearly and half-yearly?
Options
A. Rs.3.06
B. Rs.2.04
C. Rs.3.65
D. Rs.5.40

Correct Answer

Rs.2.04

Explanation

C.I. when interest compounded yearly

$R s . [5000 * (1 + \frac{4}{100}) * (1 + \frac{\frac{1}{2} * 4}{100})]$

$R s . [5000 * \frac{26}{25} * \frac{51}{50}]$

=Rs.5034

C.I. when interest iscompounded half-yearly

$R s . [5000 * {(1 + \frac{2}{100})}^{3}]$

= Rs. 5306.04

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

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Compound Interest problems

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1. Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quartely.
Options
A. Rs.2522
B. Rs.2422
C. Rs.3522
D. Rs.2322

3. A bank offers 15% compound interest per half year. A customer deposits Rs 7200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by means of interest is
Options
A. Rs 6803
B. Rs 850
C. Rs 3402
D. Rs 1701

6. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
Options
A. 3years
B. 2years
C. 4years
D. 6years

7. What is the rate of compound interest? I. The principal was invested for 4 years. II. The earned interest was Rs. 1491.
Options
A. I alone sufficient while II alone not sufficient to answer
B. II alone sufficient while I alone not sufficient to answer
C. Either I or II alone sufficient to answer
D. Either I or II alone sufficient to answer

8. If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time
Options
A. Rs.51.25
B. Rs.61.25
C. Rs.51
D. Rs.42

9. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is
Options
A. Rs.2
B. Rs.3
C. Rs.4
D. Rs.5

10. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
Options
A. 8
B. 10
C. 12
D. 14

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