A person deposited Rs 50,000 in bank for 2 years

Question

A person deposited Rs 50,000 in bank for 2 years at the rate of 10% p.a. compound interest compounded annually. But after one year, Bank has changed the policy and decided to pay semi annual compound interest at the same rate. What is the percentage difference between compound interests of first and second year?

Arun · Accepted Answer

Principle Amount , p= Rs.55000Rate of interest per annum, R = 10% First year interest = p×(R/100) = 55000×(10/100) = Rs. 5500First year Amount = Rs.55000+Rs.5500 = Rs.60500 Second year compounded amount = 60500×[ 1+ (10)/(2×100) ]2 = Rs.66701.25 Hence second year compound interest = 66701.25 - Rs.60500 = Rs.6201.25percentage of second year compound interest = (6201.25/60500)×100 = 10.25 % Hence difference in percentage of compound interest = 10.25 - 10 = 0.25%

10 grade maths> A person deposited Rs 50,000 in bank for ...

TheMiralce123 , 5 Years ago

Arun

Provide a better Answer & Earn Cool Goodies

LIVE ONLINE CLASSES

Ask a Doubt

What are the advantages and disadvantages of mean, median and mode?

10 grade maths

Find the sum of the first 100 natural numbers.

10 grade maths

AOBC is a rectangle whose three vertices are A(0,-3), O(0,0) and B (4,0). The length of its diagonal is__

10 grade maths

For an AP, it is given that first term (a)= 5 and Common Difference (d) = 3 and nth term = 50. Find n and sum of first n terms of AP

10 grade maths

The value(s) of k for which the quadratic equation 2x^2 + kx + 2 = 0 has equal roots, is (a) 4 (b) pm 4 (c) -4 (d) 0

10 grade maths

10 grade maths> A person deposited Rs 50,000 in bank for ...

TheMiralce123 , 5 Years ago

Arun

Provide a better Answer & Earn Cool Goodies

LIVE ONLINE CLASSES

Ask a Doubt

Other Related Questions on 10 grade maths

What are the advantages and disadvantages of mean, median and mode?

10 grade maths

Find the sum of the first 100 natural numbers.

10 grade maths

AOBC is a rectangle whose three vertices are A(0,-3), O(0,0) and B (4,0). The length of its diagonal is__

10 grade maths

For an AP, it is given that first term (a)= 5 and Common Difference (d) = 3 and nth term = 50. Find n and sum of first n terms of AP

10 grade maths

The value(s) of k for which the quadratic equation 2x^2 + kx + 2 = 0 has equal roots, is (a) 4 (b) pm 4 (c) -4 (d) 0

10 grade maths