The difference between simple interest and the compound interest on Rs.600 for 1 year at 10% per annum, reckoned half-yearly is:
Rs.2.50
Rs.4.40
Rs.6.60
Nil
Explanation:
C.I when reckoned half-yearly
= Rs. [800×(1+10100)4−800][800×(1+10100)4−800] = Rs. 172.40
Difference = Rs.(172.40-168) Rs.4.40
C.I when reckoned half-yearly
= Rs. [800×(1+10100)4−800][800×(1+10100)4−800] = Rs. 172.40
Difference = Rs.(172.40-168) Rs.4.40