Sita deposited ₹ 5,000 at 10% simple interest for 2 years.

Sita deposited ₹ 5,000 at 10% simple interest for 2 years. How much more money will Sita have in her account at the end of two years, if it is compounded semiannually.

Given in question , Rate = 5%, Time = 4 half years , P = ₹ 5000

∴ C.I. = P			1 +	R		^T	− 1
				100

C.I. = 5000			1 +	5		⁴	− 1
				100

C.I. = 5000		194481	− 1
		160000

C.I. =	5000 × 34481	= ₹ 1077.5
	160000

S.I.=	5000 × 10 × 2	= ₹ 1000
	100

Required Difference = C.I. - S.I.
Difference = 1077.5 – 1000 = ₹ 77.5