the difference between the compound interests on rs 1600 for one year..., Compound Interest, General Mathematics

Question:The difference between the compound interests on Rs.`1600` for one year at `20%`per annum, when compounded half yearly and quarterly is :

A `Rs. 8.81` 
B `Rs. 9.4` 
C `Rs. 10.36` 
D `Rs. 8.50`

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+ AnswerA

+ ExplanationC.I. when interest is compounded half yearly

= Rs.`[1600 xx (1 + 10/100)^2 - 1600]`

`= Rs. 336`

C.I. when interest is compounded quarterly

= Rs.`[1600 xx (1 + 5/100)^4 - 1600]`

`= Rs. 344.81`

:. Difference = Rs.`(344.81 - 336)`

`= Rs. 8.81`.

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