Answer: Option A
Explanation:
C.I. when interest
compounded yearly

= ₹ 

5000 x 

1 + 
4 

x 

1 + 
x 4 


100 
100 


= ₹ 

5000 x 
26 
x 
51 

25 
50 


= ₹ 5304. 
C.I. when interest is
compounded halfyearly



= ₹ 

5000 x 
51 
x 
51 
x 
51 

50 
50 
50 


= ₹ 5306.04 
∴Difference = ₹ (5306.04  5304) = ₹ 2.04