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:
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| = Rs. 3321. |
C.I. = Rs. (3321 - 3200) = Rs. 121
Discussion:
220 comments Page 14 of 22.
Deepa said:
10 years ago
Thank you all those helped me to clear the problem.
KAJAL said:
9 years ago
I solve this by the simple interest method.
Where p = 1600, r = 5, T = 0.5(6 months) (January amount).
Interest = (1600*5*0.5)/(100*2) = 40 Rs.
Now p =1640(January) + 1600(newly added in July).
So, p = 3240, r = 5, t = 0.5(6 months).
Interest = (3240*5*0.5)/(100*2) = 81 Rs.
Now the total interest = 40 Rs + 81 Rs =121 Rs.
Where p = 1600, r = 5, T = 0.5(6 months) (January amount).
Interest = (1600*5*0.5)/(100*2) = 40 Rs.
Now p =1640(January) + 1600(newly added in July).
So, p = 3240, r = 5, t = 0.5(6 months).
Interest = (3240*5*0.5)/(100*2) = 81 Rs.
Now the total interest = 40 Rs + 81 Rs =121 Rs.
Anandaganesh said:
9 years ago
Thank you @Amit. Your explanation is simple to understand the concept.
Abdul wahab said:
9 years ago
Where the present value (pv) = 1600.
Rate: 5%/2.
Then, n:2 for 1st jan to dec and 1 for 1st jul to dec.
Therefore fv =1600 (1 + 0.025) ^2 + (1 + 0. 025).
= 1600 * 2. 07563.
= 3321.
Now the amount he would have is 3321 - 3200 = 121Rs.
Rate: 5%/2.
Then, n:2 for 1st jan to dec and 1 for 1st jul to dec.
Therefore fv =1600 (1 + 0.025) ^2 + (1 + 0. 025).
= 1600 * 2. 07563.
= 3321.
Now the amount he would have is 3321 - 3200 = 121Rs.
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.
Abi said:
9 years ago
@Mon Doley.
Thanks, you done a great job.
Thanks, you done a great job.
Kunal said:
9 years ago
Here is a very simple method.
1600 * 5 * 1/2 * 100 = 40.
Now the amount you have on 1st July is 1600 + (1600 + 40) = 3240.
So.
3240 * 5 * 1/2 * 100 = 81.
Now add 40 + 81 = 121.
1600 * 5 * 1/2 * 100 = 40.
Now the amount you have on 1st July is 1600 + (1600 + 40) = 3240.
So.
3240 * 5 * 1/2 * 100 = 81.
Now add 40 + 81 = 121.
V!cky said:
9 years ago
If interest is 5% compounded semi-annually. Then what is the effective interest for 1st half, is it 5/2% or 5%?
Anonymous said:
9 years ago
I don't understand how come it is divided by 200? What is 200?
And isn't the formula P(1+i)^n?
And isn't the formula P(1+i)^n?
Nishant said:
9 years ago
Thanks @Amit, @Jyoti and @Nil.Dhongde.
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