Practicing Success
The difference between the compound interest on a sum of ₹ 8,000 for 1 year at the rate of 10% per annum, interest compounded yearly and half yearly is: |
₹20 ₹40 ₹30 ₹10 |
₹20 |
The formula used here is, Difference in the simple interest and compound interest on a certain sum at R% per annum in 2 years = (CI - SI) = $\frac{PR^2}{100^2}$ ⇒ Difference in the simple interest and compound interest on a certain sum at 10% per annum in 1 years compounded half yearly = x So, actual rate = 5% ⇒ x = $\frac{8000 ×5^2}{100^2}$ ⇒ x = \(\frac{8000}{400}\) ⇒ x = 20 Thus, the sum is Rs 20 |