Mohan deposited Rs 5000 at 8% p.a. compound interest in a bank. Find the difference between the amounts compounded yearly and half yearly in two years.
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Mohan deposited Rs 5000 at 8% p.a. compound interest in a bank. Find the difference between the amounts compounded yearly and half yearly in two years.
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Answer:
970.44rs
Step-by-step explanation:
principle = 5000
interest = 8% = 2/25 in fraction
25² 27²
--------------------------------
625 729
625 = 5000
729 = x
apply cross multiplication method
x = 5832 rs for compounded annually for 2 years
time = 2 years , compounded half yearlY
P A
25⁴ 26⁴
----------------------------------
390,625 531,441
390625 = 5000
531441 = x
apply cross multiplication method
x = 6,802.4448 rs
the difference between the amounts compounded yearly and half yearly in two years.
6,802.4448 - 5832 = 970.44 rs