What is the difference (in rs) between the interest on Rs 50,000 for one year at 8% per annum compounded half-yearly and yearly?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 80
Amount after 1 year compounded yearly
⇒ 50000 × 108/100 = 54000
Interest earned = 4000
Amount after 1 year compounded half yearly,
⇒ 50000 × 104/100 × 104/100 = 54080.
Interest earned = 4080
Required difference = 4080 - 4000 = 80