What is the difference between the compound interest on 5000 for 1.5 year at 4 per annum?
What is the difference between the compound interests on Rs.5000 for 1.5 years at 4% per annum compounded yearly and half-yearly?
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Answer (Detailed Solution Below)Option 4 : Rs. 2.04 Free LIC AAO Prelims 2020: Full Mock Test 100 Questions 70 Marks 60 Mins As we know that:- The formula for annual compound interest, including principal sum, is: A = P (1 + r/n) (nt) Where: A = the future value of the investment/loan, including interest P = the principal investment amount (the initial deposit or loan amount) r = the annual interest rate (decimal) n = the number of times that interest is compounded per year t = the number of years the money is invested or borrowed for C.I. when interest compounded yearly = Rs. 5000 × (1 + 4/100) × (1 + (4/2) /100) = Rs.(5000 × 26/25 × 51/50) = Rs. 5304. C.I. when interest is compounded half-yearly = Rs. 5000 × (1 + 2/100) 3 = Rs.(5000 × 51/50 × 51/50 × 51/50) = Rs. 5306.04 Difference = Rs.(5306.04 - 5304) = Rs. 2.04 Last updated on Sep 21, 2022 The Life Insurance Corporation (LIC) has released the list of candidates who have cleared the LIC AAO Mains and Interview round of the 2020 cycle. It is important for the candidates to note that candidates who are qualified for the Mains & Interview round of the exam are only eligible for the next round, which is the Medical Test. A total number of 168 vacancies were released for the LIC AAO 2020 cycle. The selected candidates will receive a salary range between Rs. 32,795 to Rs. 62,315. Know about the LIC AAO Result here. Stay updated with the Quantitative Aptitude questions & answers with Testbook. Know more about Interest and ace the concept of Compound Interest. No worries! We‘ve got your back. Try BYJU‘S free classes today! No worries! We‘ve got your back. Try BYJU‘S free classes today! Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses No worries! We‘ve got your back. Try BYJU‘S free classes today! Solution The correct option is C₹ 1655Given:P = ₹ 5000R = 20% per annum, so will be 10% when compounded half-yearlyn = 3 (As 1.5 years has 3 half years in it)Compound interest will be calculated by C.I = [P×(1+R100)n]−P Substituting the values, we get,C.I=[5000 × (1+10100)3]−5000C.I=[5000×1110×1110×1110]−5000C.I=₹ 6655−₹5000C.I=₹ 1655What is the difference between the compound interest on 5000 for 1.5 years at 4% per annum compounded yearly and half yearly?5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly? = Rs. 5304.
What is the difference between compound interest on rupees 5000 for 1.5 years at 4% per annum?Detailed Solution. = Rs. (5000 × 26/25 × 51/50) = Rs. 5304.
How do you calculate compound interest for 1.5 years compounded annually?Detailed Solution. Given: P = Rs. 15000, R = 20%, T = 1.5 year.. Concept used: When Calculating semi annually, rate gets halved and time gets doubled.. Calculation: C.I. semi annually ⇒ R = 10%, T = 3 years. C.I. = P [(1 + R/100)T -1] C.I. = 15000[(1 + 10/100)3 -1] = 15000 × (1331 – 1000) × 1000. = 15 × 331. ⇒ C.I. = Rs. 4965.. What is the difference between the compound interests on 10000 for 2 years at 4% per annum compounded annually and half yearly?So, the compound interest on Rs $10000$ in $2$ years at $4%$ per annum being compounded half yearly is $Rs. 824.32$.
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