Question
Download Solution PDFWhat is the difference between the compound interests on Rs.23000 for 1 year at 10% per annum compounded yearly and half-yearly? (In Rs.)
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Principal (P) = ₹23,000
Rate (R) = 10% per annum
Time (T) = 1 year
Formula Used:
Compound Interest (CI) = A - P
Amount (A) = P × (1 + R/100)t (for yearly)
Amount (A) = P × (1 + R/2 ÷ 100)2t (for half-yearly)
Calculation:
Yearly Compounding:
A1 = 23000 × (1 + 10/100)1 = 23000 × 1.10 = ₹25,300
CI1 = 25,300 - 23,000 = ₹2,300
Half-Yearly Compounding:
A2 = 23000 × (1 + 5/100)2 = 23000 × (1.05)2 = 23000 × 1.1025 = ₹25,357.50
CI2 = 25,357.50 - 23,000 = ₹2,357.50
Difference:
CI2 - CI1 = 2357.50 - 2300 = ₹57.50
∴ The difference is ₹57.50.
Last updated on Jul 4, 2025
-> The UP Police Sub Inspector 2025 Notification will be released by the end of July 2025 for 4543 vacancies.
-> A total of 35 Lakh applications are expected this year for the UP Police vacancies..
-> The recruitment is also ongoing for 268 vacancies of Sub Inspector (Confidential) under the 2023-24 cycle.
-> The pay Scale for the post ranges from Pay Band 9300 - 34800.
-> Graduates between 21 to 28 years of age are eligible for this post. The selection process includes a written exam, document verification & Physical Standards Test, and computer typing test & stenography test.
-> Assam Police Constable Admit Card 2025 has been released.