What is the difference between the compound interest on Rs.5,750 for one year at 16% per annum compounded yearly and compounded half-yearly?

Correct option is B

Given:
The difference between compound interest on a sum of Rs.5,750 for one year at the rate of 16% per annum, interest compounded yearly and half yearly.
Solution:
Yearly at the rate of 16% for one year is 16%
Half-yearly = $$\frac{16}2$$​ = 8%
Compound interest for one year = $$(x+y+\frac{xy}{100})$$​​
Compound interest for one year at 8 % = $$(8+8+\frac{64}{100})$$​ = 16.64% is the half yearly interest
Difference of yearly and half yearly interest rate = 16.64% - 16% = 0.64%
Now 0.64% of 5,750 = Rs. 36.80

Alternate Solution:

One year CI (compounded yearly) $$= 5750 \times \frac{16}{100} = 920$$​​

 One year CI (compounded half yearly) = $$5750 \times \frac{108}{100} \times \frac{108}{100} - 5750 = 956.8$$ 

Required difference = 956.8 - 920 = Rs.36.80​