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 12 of 22.
Vasavi said:
1 decade ago
As it is half yearly basis,
The formula is A=p[1+(R/2)/100]^2(n).
But here only time varies i.e n=1y & n=1/2y.
Now substitute.
The formula is A=p[1+(R/2)/100]^2(n).
But here only time varies i.e n=1y & n=1/2y.
Now substitute.
Stupid said:
7 years ago
@All.
In compound interest annually the formula is P(1+R/100)^n. But for half-yearly, it is P[1+2R/100)^2n substitute the values.
In compound interest annually the formula is P(1+R/100)^n. But for half-yearly, it is P[1+2R/100)^2n substitute the values.
Kush said:
8 years ago
We use compound interest formula of half-year because the interest rate imposing on 1600 deposited on 1 Jan was only for 6 months.
Vivek Kumar said:
1 decade ago
Can someone tell me why have they considered 1600 value for the next 6 months (P) should be 1600 + Interest for the next half.
Expert said:
1 decade ago
1st half 1600. After half half yr @2.5% 40 so total 1640.
2nd half 1640+1600 = 3240 so after 1yr 3321.
Gain 3321-3200 = 121.
2nd half 1640+1600 = 3240 so after 1yr 3321.
Gain 3321-3200 = 121.
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.
Double the amount of 1600 = 1600+1600 = 3200.
Is this way is correct? I think its correct.
Pooja said:
1 decade ago
@Amit: Thanks a lot you made me understand the concept. It took me whole day to ponder over the 2nd half of the expression.
Arpita Mandal said:
9 years ago
Why the amount of first six months is not included with 1600 as principal while calculating the amount of next six months?
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)?
Namrata said:
8 years ago
Why we are using half yearly formula in the first case taking n=1/2, and in the 2nd case taking n=1 but keeping R as R/2?
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