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?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
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