What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly?  Choose the correct choice from the following answers
A) Rs.126  B) Rs.120  C) Rs.127  D) Rs.197  E) Rs.122
When compounded annually, interest   = 12000[1 + 20/100]1 - 12000 = Rs.2400   When compounded semi-annually, interest   = 12000[1 + 10/100]2 - 12000 = Rs.2520   Required difference = 2520 - 2400 = Rs.120   Answer:Rs.120
<result>B</result>
What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly?