What is the difference between compound interest on 5,000 for 1 1 2 years at 4%

Sail E0 Webinar

Question

What is the difference between compound interest on 5,000 for 1 1 2 years at 4% per annum according as the interest is compounded yearly or halfyearly?

Options:

A . 4.80

B . 2.04

C . 8.30

D . 3.06

Answer: Option D
Answer: (d)Compound Interest (when compounded yearly)= $5000(1 + 4/100)^(1.5) - 5000$= $5000(26/25)^(1.5) - 5000$= 5302.9805 - 5000 = Rs.302.9805C.I. (When compounded halfyearly).= $5000(1 + 2/100)^3 - 50000$= 5306.04 - 5000 = Rs.306.04Required difference= Rs.(306.04 - 302.9805)= Rs.3.059 = Rs.3.06

Was this answer helpful ?

Next Question

Submit Solution

More Questions on This Topic :

Question 1. The difference between the compound interest (compounded annually) and the simple interest on a sum of 1000 at a certain....is 10. The rate of interest per annum is :

Question 2. The difference between simple interest and compound interest of a certain sum of money at 20% per annum for 2 years is 4....annum for 2 years is 48. Then the sum is

Question 3. The difference between the compound interest and the simple interest on a certain sum at 5% per annum for 2 years is 1.5....per annum for 2 years is 1.50. The sum is

Question 4. The difference between compound interest (compounded annually) and simple interest on a certain sum of money at 10% per ....annum for 2 years is 40. The sum is :

Question 5. If a sum of money compounded annually becomes 1.44 times of itself in 2 years, then the rate of interest per annum is....

Question 6. A sum of money placed at compound interest doubles itself in 5 years. In how many years, it would amount to eight times ....times of itself at the same rate of interest ?

Question 7. A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to four times its....many years will it amount to four times itself ?

Question 8. A sum of money becomes eight times in 3 years, if the rate is compounded annually. In how much time will the same amount....same amount at the same compound rate become sixteen times?

Question 9. A sum of money invested at compound interest doubles itself in 6 years. At the same rate of interest it will amount to e....it will amount to eight times of itself in :

Question 10. If the amount is 2.25 times of the sum after 2 years at compound interest (compound annually), the rate of interest per ....(compound annually), the rate of interest per annum is :

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Chapter 3.1 : Overview of Finance & Accounts Department Chapter 3 : Finance & Accounts SAIL E0 - GFM 2024

Chapter 2.1 : Overview Chapter 2 : Materials Management SAIL E0 - GFM 2024

Chapter 1.1 : Personnel Functions- An overview Chapter 1 : Personnel Management SAIL E0 - GFM 2024

GPOE / GPA Combined 1 Free CBT Mock Test SAIL E0 2024

CBT Mixed Test 1 GPOE/GPA SAIL E0 2024