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10000 was lent for one year at 10% per annum. By how much more will the interest be, if the sum was lent at 10% per annum, interest being compounded half yearly?

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Rs. 10000

Rs. 200

Rs. 25

Rs. 5000

answer is C.

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Detailed Solution

We know that

Substituting the values

Here,
Interest = A-P
Substituting the values

In case 2,
We know that

Substituting the values

Here,
Interest = A-P
Substituting the values

So, the difference between the two interests

Hence, Option (3) is the correct answer.

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