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- What is the difference between the compound interest on Rs.
Question 1:
What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly? A. Rs.130
B. Rs.140
C. Rs.120
Feedback When compounded annually, interest
= 12000[1 + 20/100]1 - 12000 = Rs.2400
When compounded semi-annually, interest
= 12000[1 + 10/100]2 - 12000 = Rs.2520
Required difference = 2520 - 2400 = Rs.120
= 12000[1 + 20/100]1 - 12000 = Rs.2400
When compounded semi-annually, interest
= 12000[1 + 10/100]2 - 12000 = Rs.2520
Required difference = 2520 - 2400 = Rs.120
D. Rs.110
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