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
B
C
D
`Rs. 8.81`
B
`Rs. 9.4`
C
`Rs. 10.36`
D
`Rs. 8.50`
Note: C.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`.