The difference of compound interest on Rs.800 for 1 year

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The difference of compound interest on Rs.800 for 1 year at 20% per annum when compound half yearly and quarterly is ?

1. Nil
2. Rs. 2.50
3. Rs. 4.40
4. Rs. 6.60

Correct Option: C

C.I. when reckoned half yearly
= Rs.[800 x (1 + 10/100)² - 800]
= Rs. 168

C.I.when reckoned quarterly
= Rs.800[(1 + 5/100)⁴ - 1]
= 800[(194481 - 160000)/160000]
= 34481/200
= Rs.172.40

∵ Required difference =Rs.(172.40 - 168)
= Rs.4.40