1.

Find the difference between the C.I and the S.I on ₹ 5000 for 1 year at 2% p.a, if the interest is compounded half yearly.

Answer»

Principal (P) = ₹ 5000

time period (n) = 1 yr.

Rate of interest (r) = 2% p.a

for half yearly r = 1%

Difference between Cl & SI is given by the formula

CI – SI = P (r/100)2n [for half yearly compounding]

CI – SI = P (1/100)2×1

= 5000 x 1/100 x 1/100 

= ₹ 0.50



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