What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?

A. Rs. 2.04 B. Rs. 3.06
C. Rs. 4.80 D. Rs. 8.30

• C.I interest yearly = rs[5000*(1+4/100)*(1+(1/2*4)/100)]
  = rs[5000*(1+1/25)*(1+1/50)]
  = rs[5000*26/25*51/50]
  = rs 5304
  c.I interest on half-yearly = rs[5000*(1+((2)^3)/100)]
  = rs[5000*51/50*51/50*51/50]
  = rs[(51*51*51)/45]
• 5 years agoHelpfull: Yes(1) No(0)
• C.I interest yearly = rs[5000*(1+4/100)*(1+(1/2*4)/100)]
  = rs[5000*(1+1/25)*(1+1/50)]
  = rs[5000*26/25*51/50]
  = rs 5304
  c.I interest on half-yearly = rs[5000*(1+((2)^3)/100)]
  = rs[5000*51/50*51/50*51/50]
  = rs[(51*51*51)/45]
  = 5304.04
  difference between C.I =5306.04-5304
  =2.04
• 5 years agoHelpfull: Yes(1) No(0)
• in question the time should be 1and half year i.e 3/2 year.
  for this answer is 2.04.
  explanation:
  for half yearly compound interest on 5000 for 3/2 year is 5306.04
  and for yearly compound interest on 5000 for 3/2 year is 5304.00 so the difference is 2.04(option a)
• 7 years agoHelpfull: Yes(0) No(0)