📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    What is the difference between the compound interests on

    ₹ 7,500 for 1 year at a rate of 6% per annum compounded yearly and half-yearly?
    A ₹ 5.75 Correct Answer Incorrect Answer
    B ₹ 5.25 Correct Answer Incorrect Answer
    C ₹ 6.00 Correct Answer Incorrect Answer
    D ₹ 6.75 Correct Answer Incorrect Answer

    Solution

    C.I yearly Principal=7500 Rs. Time =1 years Interest rate= 6 % CI = 7500 × { (1 + 6/100)1 – 1} CI = 7500 × (1.06 – 1) = Rs. 450 C.I. half yearly P = Rs. 7500 Time = 1 year = 2 quarters R = 3% C.I. = 7500 × {(1 + 3/100) (1 + 3/100) – 1) C.I. = 7500 × {1.0609 – 1} C.I. = 7500 × 0.0609 = Rs. 456.75 Required difference = 456.75– 450 = Rs. 6.75

    Practice Next
    More Previous year papers Questions
    ask-question