What is the difference between the compound interests on Rs. 5000 for 1
years at 4% per annum compounded yearly and half-yearly?
C.I. when interest
compounded yearly = Rs. 
5000 x 
1 + 4 
x 1 + x 4 
100 100 = Rs. 
5000 x 26 x 51 
25 50 = Rs. 5304.
C.I. when interest is
compounded half-yearly = Rs. 5000 x 1 + 2 3 100 = Rs. 5000 x 51 x 51 x 51 50 50 50 = Rs. 5306.04
Difference = Rs. (5306.04 - 5304) = Rs. 2.04
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