What is the difference between the C.I. on Rs. 8000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?	Pick one.
A) s . 3.26  B) s . 2.08  C) s . 2.02  D) s . 2.83  E) s . 2.42

Rationale: "c . i . when interest is compounded yearly = [ 8000 * ( 1 + 4 / 100 ) * ( 1 + ( 1 / 2 * 4 ) / 100 ] = 8000 * 26 / 25 * 51 / 50 = rs . 8486.4 c . i . when interest is compounded half - yearly = [ 8000 * ( 1 + 2 / 100 ) 2 ] = ( 8000 * 51 / 50 * 51 / 50 * 51 / 50 ) = rs . 8489.66 difference = ( 8489.66 - 8486.4 = rs . 3.26 . answer : a"
Answer: A