Simple & Compound Interest · Question 27 · Hard
Simple & Compound Interest question 27
What is the difference between the compound interest on ₹20,000 for 1 year at 10% per annum when compounded half-yearly and when compounded annually?
- ₹50
- ₹100
- ₹25
- ₹0
Answer and explanation
Answer: A. ₹50
Explanation: Half-yearly: 20000 × (1.05)² = ₹22,050, so CI = ₹2,050. Annually: CI = ₹2,000. Difference = ₹50.
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