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 |
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| = Rs. 3321. |
C.I. = Rs. (3321 - 3200) = Rs. 121
Discussion:
220 comments Page 11 of 22.
Kasinath @Hyd said:
1 decade ago
Since Bank offers compound interest on HALF YEARLY basis: so convert 1 Year into two Half years. so, use only half year formula.
Half Year formula: (1+ R/2*100)^2n.
1 year = Half Year + Half Year.
=>(1+ R/2*100)^2*1 n=1 is bcoz (1/2 +1/2).
Half year = (1+ R/2*100)^1 1 is bcoz (2*1/2) here n=1/2.
Half Year formula: (1+ R/2*100)^2n.
1 year = Half Year + Half Year.
=>(1+ R/2*100)^2*1 n=1 is bcoz (1/2 +1/2).
Half year = (1+ R/2*100)^1 1 is bcoz (2*1/2) here n=1/2.
Siva nandi reddy said:
1 decade ago
There is no formula to get the answer.
Simple logic is there that,
For 1 year 80/- is the interest then half of that amt is 40/- for half year.
So next half year for Jan amount 40/- and 1/- (it is obtained on first half interest). So total is 81/-.
and for July amt 40 because it is also half year, So the total is 121/-.
Simple logic is there that,
For 1 year 80/- is the interest then half of that amt is 40/- for half year.
So next half year for Jan amount 40/- and 1/- (it is obtained on first half interest). So total is 81/-.
and for July amt 40 because it is also half year, So the total is 121/-.
Aramide Akintmehin said:
1 decade ago
Please why did you multiply the 100 by 2.
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.
Srikanth said:
1 decade ago
He deposited 1600 for 1/2 year but our question he asks yearly so 1600+1600 = 3200.
Purnika said:
1 decade ago
Why we are supposed to add the compound interest for half year and one year to get the amount and why C.I. = (3321-3200)?
Iovd said:
1 decade ago
@Purnika.
They have calculated CI for 1 year not for 1/2 year see carefully.
They have calculated CI for 1 year not for 1/2 year see carefully.
Roman pearce said:
1 decade ago
First i did for one year then converted into half:
CI = 1600*5/100 = 80 for one year we want for 6 months then its = 40 for next half year.
CI = 1640+1600*5/100 = 164 one year but we want for 6 months then its = 81.
Total interest is 40+81 = 121.
CI = 1600*5/100 = 80 for one year we want for 6 months then its = 40 for next half year.
CI = 1640+1600*5/100 = 164 one year but we want for 6 months then its = 81.
Total interest is 40+81 = 121.
Ranjith said:
1 decade ago
I have taken this formula:
A = 1600(1+2.5/100)^2+1600(1+2.5/100).
= 1600(1+41/40)^2+1600(1+41/40).
= 1681+1640.
= 3321.
Therefore less principle amount of 1600*2 = 3200 to get interest earned.
3321-3200 = 121.
A = 1600(1+2.5/100)^2+1600(1+2.5/100).
= 1600(1+41/40)^2+1600(1+41/40).
= 1681+1640.
= 3321.
Therefore less principle amount of 1600*2 = 3200 to get interest earned.
3321-3200 = 121.
Rak said:
1 decade ago
Why subtract 3200 from 3321?
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