What is the difference between the compound interests on Rs. 5000 for 1
years at 4% per annum compounded yearly and half-yearly?
📊 Excellent Calculation! 🤩
You calculated the Compound Interest (C.I.) for both yearly and half-yearly compounding, and then found the difference between them.
Yearly Compounding
– Principal (P) = Rs. 5000
– Time (T) = 1.5 years
– Interest Rate (R) = 4%
– Amount = Rs. 5304
– C.I. = Rs. 304
Half-Yearly Compounding
– Principal (P) = Rs. 5000
– Time (T) = 1.5 years = 3 half-years
– Interest Rate (R) = 4% per annum = 2% per half-year
– Amount = Rs. 5306.40
– C.I. = Rs. 306.04
Difference in C.I.
– Difference = C.I. (half-yearly) – C.I. (yearly)
= Rs. 306.04 – Rs. 304
= Rs. 2.04
The final answer is: The difference in Compound Interest is Rs. 2.04. 👍
