Question 100

What is the difference (in Rs) in Compound interest earned in 1 year on a sum of Rs 25,000 at 20% per annum compounded semi-annually and annually?

Solution

Semi C.I = $$25000\left(1+\frac{10}{100}\right)^{1\times2}-25000=5250\ Rs.$$

And, Annual C.I = $$25000\left(1+\frac{20}{100}\right)^1-25000=5000\ Rs.$$

So, their difference is = 5250-5000= 250 Rs .

B is correct choice.

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