Find the difference between compound interest on ₹8000 for years at 10% p.a. when compounded annually and semi-annually.

Question

KnowledgeBoat · Accepted Answer

Case 1: When compounded annually, rate for first year = 10%, rate for next year = 5%. On substituting values, C.I. = A - P = ₹9240 - ₹8000 = ₹1240. Case 2: When compounded semi-annually, rate = 5%, n = 3. On substituting values, C.I. = A - P = ₹9261 - ₹8000 = ₹1261. Difference between two C.I. = ₹1261 - ₹1240 = ₹21.

Mathematics

Find the difference between compound interest on ₹8000 for years at 10% p.a. when compounded annually and semi-annually.

Compound Interest

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