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Compound Interest Practice Test 3
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© examsnet.com
Question : 6
Total: 40
What is the difference in compound interest on a sum of Rs 15,000 at 10% for one year when the interest is compounded annually and half yearly.
Rs 37.5
Rs 25
No difference
Rs 30.2
None of these
Validate
Solution:
Compounded annually.
Amount
=
15
,
000
(
1
+
10
100
)
t
Amount
=
15
,
000
×
11
10
Amount = Rs 16,500
CI = 16,500 - 15,000
CI = Rs 1,500
Compounded half yearly,
Amount
=
15000
(
1
+
10
2
×
100
)
2
Amount = 16,537.5
CI = 16,537.5 - 15,000 = Rs 1,537.5
Difference = 1,537.5 - 1,500 = Rs 37.5
© examsnet.com
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