The difference between the compound interest on a sum of Rs. 8,000 for 1 year at the rate of 10% per annum, interest compounded yearly and half yearly is:
A. Rs. 20
B. Rs. 40
C. Rs. 30
D. Rs. 10
Answer: Option A
Solution (By Examveda Team)
Principal = Rs. 8000Rate = 10% p.a. = 5% half per yearly
Time = 1 year
Compound interest yearly = $$\frac{1}{{10}}$$ = Rs. 800
10 unit ⟶ Rs. 8000
1 unit ⟶ Rs. 800
Compound interest half yearly = $$\frac{1}{{20}}$$
400 unit ⟶ 8000
1 unit ⟶ 20
41 unit ⟶ 20 × 41 = Rs. 820
Difference = 820 - 800 = Rs. 20
This Question Belongs to Arithmetic Ability >> Compound Interest
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