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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. |
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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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