If an amount of Rs.12000 is invested in two different schemes of which one is SI with 10% p.a interest and the other is CI with 10% p.a interest, compounded half-yearly, what will be the difference between SI and CI at the end of 1 year?

To solve this problem, we first need to calculate the Simple Interest (SI) and Compound Interest (CI) separately and then find the difference.

Step 1: Calculate Simple Interest (SI) The formula for Simple Interest is SI = (PRT)/100 Where: P = Principal amount = Rs. 12000 R = Rate of interest = 10% per annum T = Time = 1 year

So, SI = (12000101)/100 = Rs. 1200

Step 2: Calculate Compound Interest (CI) The formula for Compound Interest is CI = P(1 + r/n)^(nt) - P Where: P = Principal amount = Rs. 12000 r = annual interest rate in decimal = 10/100 = 0.1 n = number of times interest applied per time period = 2 (since it is compounded half-yearly) t = time the money is invested for in years = 1 year

So, CI = 12000(1 + 0.1/2)^(2*1) - 12000 = Rs. 1212.02 (approximately)

Step 3: Find the difference between CI and SI Difference = CI - SI = 1212.02 - 1200 = Rs. 12.02

So, the difference between the Simple Interest and Compound Interest at the end of 1 year would be approximately Rs. 12.02.