What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?  Options:
A) Rs.2.04 B) Rs.2.09 C) Rs.2.06 D) Rs.2.22 E) Rs.2.08
C.I. when interest is compounded yearly   = [5000 * (1 + 4/100) * (1 + (1/2 * 4)/100]   = 5000 * 26/25 * 51/50 = Rs. 5304   C.I. when interest is compounded half-yearly   = [5000 * (1 + 2/100)2]   = (5000 * 51/50 * 51/50 * 51/50) = Rs. 5306.04 Difference = (5306.04 - 5304) = Rs. 2.04.   Rs.2.04nswer:Rs.2.04
<result>A</result>
What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?