IndiaBIX

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 14 of 22.
Sneha said:   6 months ago
Anyone, please give a clear explanation about the given formula.

Why is it used? Please elobarate.
(1)
Dinesh guptha said:   1 decade ago
I think customer deposits per year 3200.

So they subtracted 3200 with that final amount it seems.
Kapil said:   1 decade ago
Why is the rate 5% halved while calculating, once it is given that it is calculated half yearly.
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?
Shashwat srivastava said:   8 years ago
Shortcut method.

Total ci =5+2.5+(5*2.5/100)
=7.6%.

ci=7.6 of 1600=121.
Srikanth said:   1 decade ago
He deposited 1600 for 1/2 year but our question he asks yearly so 1600+1600 = 3200.
Preeti said:   1 decade ago
I can't understand why the time is 1st year for deposition on jan and 1/2 on july?
Iovd said:   1 decade ago
@Purnika.

They have calculated CI for 1 year not for 1/2 year see carefully.
Kotturi said:   9 years ago
@Yamini.

Half year CI was given. But in question, they are asking annual CI.
Prince said:   8 years ago
1600 he deposits once and 1600 again twice in a year that why there is 3200?
Post your comments here:

Your comments will be displayed after verification.

Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers