Compound Interest Practice Test 2

Question : 9 of 40

Marks: +1, -0

What will be difference in the interests obtained by investing Rs. 500 for 2 years at the rate of 10%p.a. compounded yearly and Rs. 800 at the rate of 10% compounded half-yearly for 1 year?

Rs. 20
Rs. 23
Rs. 27
Rs. 30

Validate

Solution:

\I\st \C.\I.=500[(1+10/100)^2-1]

=500[121/100-1]

=500×21/100=105

\IInd \C.\I.=800[(1+5/100)^2-1]

=800[441/400-1]

=800×41/400=82

Hence, required difference = 105 – 82 = Rs. 23

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