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A sum of money is invested at a compound interest of 21% per annum compounded annually for 1 year. An equal sum is invested at 20% per annum compound interest compounded half yearly for 1 year. Which of the following statements is correct?

The investment with annual compounding will give a greater amount.

The investment with half-yearly compounding will give a greater amount.

The difference between the two amounts will always be equal to 10% of the principal.

Both the investments will give the same amount after 1 year.

✅ Correct Option: 4

For 21% compounded annually, the amount after one year is $P(1.21)$. For 20% compounded half-yearly, the rate is 10% every six months. The amount after one year is $P(1.10)^2=P(1.21)$. Both investments give the same amount after one year.

2024: Slot 1

A bank offers $5\%$ compound interest per annum, calculated on half-yearly basis. A customer deposits $₹3200$ each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

2024: Slot 2

The simple interest on a certain sum of money invested at 7.5% per annum for 4 years is ₹243. What was the sum (in ₹) invested?

A sum of money is invested at a compound interest of 21% per annum compounded annually for 1 year. An equal sum is invested at 20% per annum compound interest compounded half yearly for 1 year. Which of the following statements is correct?

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