What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

Compound Interest 01/09/2020

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

Explanation:

C.I. when interest is compounded yearly

= [5000 * (1 + 4/100) * (1 + (1/2 * 4)/100]
= 5000 * 26/25 * 51/50 = Rs. 5304
C.I. when interest is compounded half-yearly
= [5000 * (1 + 2/100)2]
= (5000 * 51/50 * 51/50 * 51/50) = Rs. 5306.04 Difference = (5306.04 – 5304) = Rs. 2.04.

Related Mcqs:

    Find out the C.I on Rs.5000 at 4% p.a. compound half-yearly for 1 1/2 years.
    A. Rs.420.20 B. Rs.319.06 C. Rs.306.04 D. Rs.294.75...
    On a sum of money, the S.I. for 2 years is Rs. 660, while the C.I. is Rs. 696.30, the rate of interest being the same in both the cases. The rate of interest is________?
    A. 10% B. 10.5% C. 12% D. None of these...
    The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is:_______?
    A. Rs 6.06% B. Rs 6.07% C. Rs 6.08% D. Rs 6.09%...
    The compound interest earned by Sunil on a certain amount at the end of two years at the rate of 8% p.a. was Rs.2828.80. Find the total amount that Sunil got back at the end of two years in the form of principal plus interest earned.
    A. Rs.18,828.80 B. Rs.19,828.80 C. Rs.18,028.80 D. Rs.17,828.80 E. None of these...
    A man saves Rs. 200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years?
    A. Rs. 565.25 B. Rs. 635 C. Rs. 662.02 D. Rs. 666.50...

Leave a Reply

Your email address will not be published. Required fields are marked *