What is the difference b/w the compound interest on Rs. 25000 for 1 year at 8% per annum compounded yearly and half yearly?
Answer & explanation
Correct answer: option 2
CI for 1 year (compounded annually) = \(\frac{25000 × 8}{100}\) = 2000
CI for 1 year (compounded semi - annually) so rate = \(\frac{8}{2}\) = 4%
CI for 1 year (compounded semi - annually)= 2040
Hence, Difference b/w these two CI = 2040 - 2000 = 40