Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

What is the difference between the compound interests on Rs. 19,000 for 1 year at 20% per annum compounded yearly and half-yearly?

Options:

57.5

60

50.5

47.5

Correct Answer:

47.5

Explanation:

P = 19000

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. = 19000 x 0.25% = 47.5