The differences between the annual interest and semi-annual interest will be Rs 435.78.
What is compound interest?
Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.
We know that the compound interest is given as
A = P(1 + r)ⁿ
Where A is the amount, P is the initial amount, r is the rate of interest, and n is the number of years.
The same of annual interest and semi-annual compound interest on a same of money for 2 years at the interest rate of 20% per annum is Rs. 18082.
The annual interest will be
⇒ 18082(1.2)² – 18082
⇒ Rs 7956.08
The semi-annual interest will be
⇒ 18082(1.1)⁴ – 18082
⇒ Rs 8391.86
Then the differences between the annual interest and semi-annual interest will be
⇒ 8391.86 – 7956.08
⇒ Rs 435.78
More about the compound interest link is given below.
https://brainly.com/question/25857212
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