Arun deposited 5000 rupees in a bank which compounds interest half yearly and Mohan deposited the same amount in another bank which compounds interest quarterly. The annual rate of interest is 6% at both the banks. How much more would Mohan get after one year?
Investment = 5000 Rs
Arun deposited 5000 Rs in a bank which compound interest half yearly.
Annual rate = 6%
Since Interest is compounded half yearly, Interest has to be calculated twice a year
Half yearly rate = 6/2=3%
We need to figure out the period in which interest compounded.
Amount after a year= 5000(1+3/100)2
= 5304.5
5305(.5paisa rounded to 1Rupee)
Mohan deposited 5000Rs in another bank which compounds interest quarterly.
Annual rate = 6%
Since Interest is compounded quarterly yearly, Interest has to be calculated four times a year.
Quarterly rate = 6/4 =1.5%
Amount after a year= 5000(1+1.5/100)4
= 5306.81 
5307(.81rounded to 1rupee)
The more amount Mohan would get = 5307-5305 = 2 Rs
Couldn't generate an explanation.
Generated by AI. May contain inaccuracies — always verify with your textbook.