ABC26GN4149 · Compound Interest

C.I. when interest is compounded yearly $$\begin{aligned} & =₹\left[5000 \times\left(1+\frac{4}{100}\right) \times\left(1+\frac{\frac{1}{2} \times 4}{100}\right)\right] \\ & =₹\left(5000 \times \frac{26}{25} \times \frac{51}{50}\right)=₹ 5304 . \end{aligned}$$ C.I. when interest is compounded half-yearly $$\begin{aligned} & =₹\left[5000 \times\left(1+\frac{2}{100}\right)^{3}\right]=₹\left(5000 \times \frac{51}{50} \times \frac{51}{50} \times \frac{51}{50}\right) \\ & =₹ 5306.04 . \end{aligned}$$ ∴ Difference $=₹(5306.04-5304)=₹ 2.04$.