What is the difference (in Rs.) between the interest on Rs.60,000 for one year at 16% per annum compounded half yearly  and yearly?

384

Amount = 60,000

Interest = 16%

If we calculate yearly

Total interest = 16%

If we calculate half yearly

Total interest = 8% + 8% + \(\frac{8×8}{100}\)%

                   = 16.64%

Difference in interest = 16.64% - 16% = 0.64%

Difference in interest = 60000 × 0.64% = 60000 × \(\frac{0.64}{100}\)

= 60000 × \(\frac{64}{10000}\) = Rs. 384