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SSC CHSL 2022 PYQ — Question 65

SSC CHSL - 30 May 2022 - Shift 2 • Quantitative Aptitude • Q65

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What is the difference between the compound interests on Rs 10,000 for 112\frac{1}{2} years at 4% per annum compounded yearly and half-yearly?

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Correct answer: D

Explanation

The correct answer is option 4 i.e. Rs. 4.08.

Amount = P(1 + R/100)T......(i)

C.I. = Amount - Principal   ....(ii)

Case 1: Interest compounded yearly,

Interest for 1 year = (10,000 × 1 × 4)/100 = 400

Now, principal = 10,400

So, Interest for ½ years = (10,400 × ½ × 4)/100 = 208

Hence the total interest = 400 + 208 = 608

Case 2: Interest compounded half-yearly,

Principal = 10,000

Time = 3 years

Rate = 4/2 = 2%

From equation (i),

Amount = 10000(1 + 2/100)3

⇒ Amount = 10,000 × (51/50)3

⇒ Amount = 10,612.08

So, Interest = 10,612.08 - 10,000 = 612.08    {using equation (ii)}

Now, difference between compound interests = 612.08 - 608 = 4.08