Answer :
Here, Principal (P) = Rs. 10000, Rate of Interest (R) = 10% = 5% (compounded half yearly)
Time, n = years = 3 years (compounded half yearly)
= Rs. 11,576.25
Compound Interest (C.I.) = A – P
= Rs. 11,576.25 – Rs. 10,000 = Rs. 1,576.25
If it is compounded annually, then
Here, Principal (P) = Rs. 10000, Rate of Interest (R) = 10%, Time =
years
Amount (A) for 1 year =
= Rs. 11,000
Interest for 1/2 year = = Rs. 550
∴ Total amount = Rs. 11,000 + Rs. 550
= Rs. 11,550
Now, C.I. = A – P = Rs. 11,550 – Rs. 10,000
= Rs. 1,550
Yes, interest Rs. 1,576.25 is more than Rs. 1,550.
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