find the differenece between compound interest on Rs. 8000 for 1 and a half years at 10% p.a. when compounded anually and semi anually.

Asked by sankar.goswami | 3rd Aug, 2015, 10:01: PM

Expert Answer:

R space equals 10 % P space equals space R s. space 8000  bold italic W bold italic h bold italic e bold italic n bold space bold italic c bold italic o bold italic m bold italic p bold italic o bold italic u bold italic n bold italic d bold italic e bold italic d bold space bold italic a bold italic n bold italic n bold italic u bold italic a bold italic l bold italic l bold italic y bold colon N space equals space 3 over 2 space y e a r s A m o u n t space a f t e r space o n e space y e a r space equals space P open parentheses 1 plus R over 100 close parentheses to the power of N A m o u n t space a f t e r space o n e space y e a r space equals space 8000 open parentheses 1 plus 10 over 100 close parentheses to the power of 1 A m o u n t space a f t e r space o n e space y e a r space equals space 8000 cross times 110 over 100 A m o u n t space a f t e r space 3 over 2 space y e a r s equals space 8800 cross times open parentheses 1 plus fraction numerator 10 over denominator 2 cross times 100 end fraction close parentheses to the power of 1 half cross times 2 end exponent A m o u n t space a f t e r space 3 over 2 space y e a r s space equals space 8800 cross times open parentheses 1 plus 5 over 100 close parentheses A m o u n t space a f t e r space 3 over 2 space y e a r s space equals space 8800 cross times open parentheses 1 plus 1 over 20 close parentheses A m o u n t space a f t e r space 3 over 2 space y e a r s space equals space 8800 cross times open parentheses 21 over 20 close parentheses A m o u n t space a f t e r space 3 over 2 space y e a r s space equals 9240  C. I space equals space A space minus space P space equals 9240 space minus space 8000 space equals 1240  bold italic W bold italic h bold italic e bold italic n bold space bold italic c bold italic o bold italic m bold italic p bold italic o bold italic u bold italic n bold italic d bold italic e bold italic d bold space bold italic s bold italic e bold italic m bold italic i bold minus bold italic a bold italic n bold italic n bold italic u bold italic a bold italic l bold italic l bold italic y bold colon N space equals space 1 1 half space y e a r s space equals space 3 over 2 y e a r s A space equals space P open parentheses 1 plus fraction numerator R over denominator 2 cross times 100 end fraction close parentheses to the power of 2 cross times N end exponent A space equals space 8000 open parentheses 1 plus 10 over 200 close parentheses to the power of 2 cross times 3 over 2 end exponent A space equals space 8000 cross times open parentheses 210 over 200 close parentheses cubed A space equals space 9261 C. I space equals space A space minus space P space equals space 9261 minus space 8000 space equals space 1261  N o w comma D i f f e r e n c e space b e t w e e n space t h e space C. I space equals space 1261 space minus 1240 space equals space R s.21

Answered by Kajal Gupta | 4th Aug, 2015, 04:48: PM