Question
The difference of compound interest on Rs. 800 for 1
year at 20% per annum when interest is being compounded. Half-yearly and quarterlySolution
CI when half yearly P= 800, R=10% t=2 CI= A-P =800[1+10/100] ² -800 =800[11/10] ² -800 = [800×121/100]-800 =968-800=168 now - CI when quarterly r=5%, t=4 CI=800[1+5/100] ⁴ - 800 =800[21/20] ⁴ -800 = [800×21×21×21×21/20×20×20×20]-800 =9261×21/10×20-800 =194481/200-800 =972.40-800 172.40 difference =172.40-168=4.40
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