What is the difference (in Rs) between the compound interests on Rs. 4000 for 1 year at 12% per annum compounded yearly and half-yearly?

Sum invested = Rs. 4000

Rate of interest = 12% and time period = 1 year

=> Compound interest compounded yearly = $$P[(1+\frac{r}{100})^t-1]$$

= $$4000[(1+\frac{12}{100})^1-1]$$

= $$4000 \times \frac{12}{100}=Rs.$$ $$480$$

Compound interest compounded half yearly = $$P[(1+\frac{r}{200})^2t-1]$$

= $$4000[(1+\frac{12}{200})^2-1]$$

= $$4000[(\frac{53}{50})^2-1]$$

= $$4000 (\frac{2809-2500}{2500})$$

= $$8\times \frac{309}{5}=Rs.$$ $$494.4$$

$$\therefore$$ Required difference = $$Rs.$$ $$(494.4-480)=Rs.$$ $$14.4$$

=> Ans - (A)