Arithmeticmedium · Past Paper
How much more interest will Rs 50000 yield in 1 year at 10% per annum if compounded semi-annually than if compounded annually?
ARs 125
BRs 250
CRs 500
DRs 0
✓ Correct Answer: A — Rs 125
Annual CI = 5000. Semi-annual CI = 50000(1.05^2 - 1) = 50000(0.1025) = 5125. Difference = 125.
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