#### Thank you for registering.

One of our academic counsellors will contact you within 1 working day.

Click to Chat

1800-5470-145

+91 7353221155

CART 0

• 0
MY CART (5)

Use Coupon: CART20 and get 20% off on all online Study Material

ITEM
DETAILS
MRP
DISCOUNT
FINAL PRICE
Total Price: Rs.

There are no items in this cart.
Continue Shopping

# 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
25763 Points
2 years ago
Principle Amount , p= Rs.55000
Rate of interest per annum, R = 10%

First year interest = p×(R/100) = 55000×(10/100) = Rs. 5500
First 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.6201.25

percentage of second year compound interest = (6201.25/60500)×100 = 10.25 %

Hence difference in percentage of compound interest = 10.25 - 10 = 0.25%