What is the difference between the compound interests on $5000 for 1 years at 4% per annum compounded yearly and half-yearly? Choose the correct option:
A) $2.04	B) $3.06	C) $4.80	D) $8.30	E) $9.30
A.   $. 2.04   B.   $. 3.06   C.   $. 4.80   D.   $. 8.30   Answer: Option A   Explanation:   C.I. when interest   compounded yearly = $ 5000 x 1 +	4 x 1 + x 4   100 100   = $. 5000 x	26	x	51   25 50   = $. 5304.   C.I. when interest is   compounded half-yearly	= $ 5000 x 1 +	2 3   100   = $ 5000 x	51	x	51	x	51   50 50 50   = $5306.04   Difference = $. (5306.04 - 5304) =$. 2.04   $2.04NSWER : $2.04 $2.04
<result>A</result>
What is the difference between the compound interests on $5000 for 1 years at 4% per annum compounded yearly and half-yearly?