What is the difference between the C.I. on Rs. 8000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?  Pick: A) s.3.26 B) s.2.08 C) s.2.02 D) s.2.83 E) s.2.42
C.I. when interest is compounded yearly   = [8000 * (1 + 4/100) * (1 + (1/2 * 4)/100]   = 8000 * 26/25 * 51/50 = Rs. 8486.4   C.I. when interest is compounded half-yearly   = [8000 * (1 + 2/100)2]   = (8000 * 51/50 * 51/50 * 51/50)   = Rs. 8489.66 Difference   = (8489.66 - 8486.4   = Rs.3.26.   s.3.26nswer: s.3.26
<result>A</result>
What is the difference between the C.I. on Rs. 8000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?