What is the difference between the compound interests on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

Chandani • 9.65K Points
Tutor III Math

Q. What is the difference between the compound interests on Rs. 5000 for 1 1/2  years at 4% per annum compounded yearly and half-yearly?

(A) 2.04

(B) 3.04

(D) 5.04

Correct Answer - Option(A)

Explanation by: Chandani

C.I. when interest
compounded yearly=rs.[5000*(1+4/100)(1+1/2*4/100)]
= Rs. 5304.
C.I. when interest is
compounded half-yearly=rs.5000(1+2/100)^3
= Rs. 5306.04
Difference = Rs. (5306.04 - 5304) = Rs. 2.04

You must be Logged in to update hint/solution

Previous MCQ Next MCQ

Discusssion

Related MCQs on Math

Q. A and B together can complete a work in 12 days. A alone can complete in 20 days. If B does the work...

Q. 4 litres of water is mixed in certain amount of pure milk whose cost is Rs. 3 per litre. If the dish...

Q. By selling 90 ball pens for Rs. 160, a person loses 20% . How many ball pens should be sold for Rs. ...

Q. A motorboat in still water travels at speed of 36 kmph. It goes 56 km upstream in 1 hour 45 minutes....

Q. There would be 10% loss if rice is sold at Rs. 5.40 per kg. At what price per kg should it be sold t...

Q. Distance between two stations A and B is 778km. A train covers the journey from A to B at 84km per h...

Q. Find the remainder when 54^124 is divided by 17.

Q. The compound interest on a sum of RS. 4000 becomes RS. 630.50 in 9 months. Find the rate of interest...

Q. The sum of both digits of a two digit number is 7. If the digits of the number are interchanged, the...

Q. A tank can be filled with water by two pipes A and B together in 36 minutes. If the pipe B was stopp...

Learn All Math MCQs

Download our easy to use, user friendly Android App from Play Store. And learn MCQs with one click.