Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - General Questions (Q.No. 1)
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:
Answer: Option
Explanation:
| Amount |
|
||||||||||||||||
|
|||||||||||||||||
|
|||||||||||||||||
|
|||||||||||||||||
| = Rs. 3321. |
C.I. = Rs. (3321 - 3200) = Rs. 121
Discussion:
220 comments Page 10 of 22.
Giri said:
1 decade ago
When interest is compound half quarterly.
Amount = p[(1+(r/2)/100]^2n.
So amount = 1600[1+(5/2)/100]^2.
Simplify above equation, we get,
Amount = 1600[1+5/2*100]^2.
Amount = p[(1+(r/2)/100]^2n.
So amount = 1600[1+(5/2)/100]^2.
Simplify above equation, we get,
Amount = 1600[1+5/2*100]^2.
Rajesh said:
1 decade ago
@Anusha:
You told 2 cases one is half yearly(july) and other is yearly(jan). In yearly case the formula should be p(1+r/100)^n but they used half yearly formula only.
You told 2 cases one is half yearly(july) and other is yearly(jan). In yearly case the formula should be p(1+r/100)^n but they used half yearly formula only.
Tiger karim said:
9 years ago
It is very easy to solve without formula.
Such as 1600 *.05 = 80/2 =40.
So, 1640 *.05 = 82/2 = 41.
So that interest = 81 and 1600*.05 = 40
Then Ans = 81 + 40 = 121.
Such as 1600 *.05 = 80/2 =40.
So, 1640 *.05 = 82/2 = 41.
So that interest = 81 and 1600*.05 = 40
Then Ans = 81 + 40 = 121.
Swathi said:
8 years ago
As per formula, S=p*(1+r/200)^2n.Where r=rate of interest per annum. Why we have taken 5/200 there.
As they didn't give rate of interest they gave compound interest.
As they didn't give rate of interest they gave compound interest.
Sundar said:
2 decades ago
Hi Akhila,
= 1 + (5/(2 x 100)
= 1 + (5/200)
= 1 + (1/40)
= (40 + 1)/40
= 41/40
Next step (41/40)^2
= 41/40 x 41/40
...
Hope you understand. Have a nice day!
= 1 + (5/(2 x 100)
= 1 + (5/200)
= 1 + (1/40)
= (40 + 1)/40
= 41/40
Next step (41/40)^2
= 41/40 x 41/40
...
Hope you understand. Have a nice day!
Shail said:
1 decade ago
Hi,
What does "5% compound interest calculated on half-yearly basis" actually mean?
This 5% interest is, interest per annum.
Or interest per 6 months?
What does "5% compound interest calculated on half-yearly basis" actually mean?
This 5% interest is, interest per annum.
Or interest per 6 months?
Anand said:
8 years ago
The difference between simple interest and compound interest to be compounded annually from the annual interest rate of 16% for 2 years on a fixed amount is 320.
Akanksha said:
1 decade ago
@ Anusha: There's nothing. See clearly, 1st january and 1st July are dates of depositions!
And please someone explain why 2nd term is not squared while 1st is?
And please someone explain why 2nd term is not squared while 1st is?
Vishal said:
1 decade ago
Yes, its right , so in first case n (no. of years) is 1 and in second case (for july) n is 1/2 years, so now you can directly put that values in simple formula.
Harshit said:
9 years ago
I am not able to get why the second term has the rate of interest as 5/2 but time is one year as we can see the second term has power 1.
Please clarify this.
Please clarify this.
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers