What is the difference between the compound interests on Rs. 15,000 for 1 year at 10% per annum compounded yearly and half-yearly?
Answer & explanation
Correct answer: option 3
P = 15000
R = 10% p.a.
Total Rate of Int. (Compounded Half yearly) = 5% + 5% +( \(\frac{5 x 5}{100}\))% = 10.25%
Difference percentage = 10.25% – 10% = 0.25%
Difference b/w C.I. = 15000 x 0.25% = 37.5