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Aptitude - Compound Interest - Discussion

Discussion Forum : Compound Interest - General Questions (Q.No. 1)
Compound Interest
1.
A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
Rs. 120
Rs. 121
Rs. 122
Rs. 123
Answer: Option
Explanation:
Amount
= Rs. 1600 x 1 + 5 2 + 1600 x 1 + 5
2 x 100 2 x 100
= Rs. 1600 x 41 x 41 + 1600 x 41
40 40 40
= Rs. 1600 x 41 41 + 1
40 40
= Rs. 1600 x 41 x 81
40 x 40
= Rs. 3321.

C.I. = Rs. (3321 - 3200) = Rs. 121

Discussion:
220 comments Page 10 of 22.
Monalisa said:   1 decade ago
I am confused somebody help me a better way to do this problem?
Anu said:   1 decade ago
1600+1600 = 3200.
Nidhi said:   1 decade ago
Thanks @Anu you explain it nicely.

Here half yearly means every six months so the amount of 1600 is submitted two times so that it become 3200.

Thank you all have a good day.
Pragya said:   10 years ago
Good explanation.
Beaulah abigail said:   10 years ago
Someone please explain the question.
Rohan said:   10 years ago
Please explain the 1st question I am not able to understand.
Aps said:   10 years ago
I don't understand please explain it.
Nikesh said:   10 years ago
Please solve this question.

In how many years will a sum of Rs 800 at 10% per annum compounded semiannually becomes Rs 926.10.

Is this process wrong?

926.1 = 800(1+5/200))^2n.

Where n is in half yearly. I got 4/5.
Hanmanth said:   10 years ago
How 3200 is coming please explain detail me?
Donalika said:   10 years ago
Easy way to do it quite clearly.

Double the amount of 1600 = 1600+1600 = 3200.

Is this way is correct? I think its correct.
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