Discussion

Explanation:

C.I. when interest compounded yearly =$\left[5000\times \left(1+\frac{4}{100}\right)\times \left(1+\frac{{\displaystyle \frac{1}{2}}\times 4}{100}\right)\right]=\left(5000\times \frac{26}{25}\times \frac{51}{50}\right)=5304$

C.I. when interest is compounded half-yearly = 

$\left[5000\times {\left(1+\frac{2}{100}\right)}^3\right]=\left(5000\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50}\right)=5306.04$

∴ Difference = Rs. (5306.04 - 5304) = Rs. 2.04

Hence, option (a).
 

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