Discussion of Question with ID = 009 under Compound-Interest

This is the discussion forum for this question. If you find any mistakes in the solution, or if you have a better solution, then this is the right place to discuss. A healthy discussion helps all of us, so you are requested to be polite and soft, even if you disagree with the views of others. The question and its current solution has also been given on this page.



What is the difference between the simple interest and compound interest at the rate of 8% for 1 year? The compounding is half-yearly, and the principal is Rs. 30000.


Rs. 48.


Rs. 148.


Rs. 98.


Rs. 248.

Ans: a

The simple interest SI = (P × r)/100 = (30000 × 8)/100 = Rs. 2400. Compound interest will have half interest rate and n = 2. By shortcut formula, we have CI = ${P × R × (R + 200)}/10000$ = ${30000 × 4 × (4 + 200)}/10000$ = Rs. 2448. The difference = Rs. 48.

Comments and Discussion