What is the difference between the C.I. on Rs. 4000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?	Choose one.
A) s . 2.04
B) s . 2.08
C) s . 1.63
D) s . 2.83
E) s . 2.42

Rationale: "c . i . when interest is compounded yearly = [ 4000 * ( 1 + 4 / 100 ) * ( 1 + ( 1 / 2 * 4 ) / 100 ] = 4000 * 26 / 25 * 51 / 50 = rs . 4243.2 c . i . when interest is compounded half - yearly = [ 4000 * ( 1 + 2 / 100 ) 2 ] = ( 4000 * 51 / 50 * 51 / 50 * 51 / 50 ) = rs . 4244.83 difference = ( 4244.83 - 4243.2 ) = rs . 1.63 . answer : c"
Answer: C