What is the difference between the C.I. on Rs. 7000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?  Select the correct option:  A) s . 2.04  B) s . 2.08  C) s . 2.02  D) s . 2.86  E) s . 2.42

Rationale: "c . i . when interest is compounded yearly = [ 7000 * ( 1 + 4 / 100 ) * ( 1 + ( 1 / 2 * 4 ) / 100 ] = 7000 * 26 / 25 * 51 / 50 = rs . 7425.6 c . i . when interest is compounded half - yearly = [ 7000 * ( 1 + 2 / 100 ) 2 ] = ( 7000 * 51 / 50 * 51 / 50 * 51 / 50 ) = rs . 7428.46 difference = ( 7428.46 - 7425.6 ) = rs . 2.86 . answer : d"
Answer: D