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 17 of 22.
Brijesh said:
9 years ago
1:- 6 month 1600 * 5 * 1/2 * 100 = 40.
2:- 6 month 1640 + 1600 = 3240.
3240 * 5 * 1/2 * 100 = 81.
Total:-3321 - 3200 = 121.
2:- 6 month 1640 + 1600 = 3240.
3240 * 5 * 1/2 * 100 = 81.
Total:-3321 - 3200 = 121.
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.
S. GANESH BABU said:
8 years ago
Very smart explanation, thanks @Brijesh.
Jyoti ranjan said:
8 years ago
This is very simple.
Here, the compound interest half yearly formula has been applied. But 1st case 1600 deposit time is 1 year and 2nd case 1600 deposit time n=1/2 year. Rest calculation is same.
Here, the compound interest half yearly formula has been applied. But 1st case 1600 deposit time is 1 year and 2nd case 1600 deposit time n=1/2 year. Rest calculation is same.
Rana suresh varma said:
8 years ago
1st calculate CI on 1600 half yearly for one year so 1600(1+5÷200)^2.
= 1600(205÷200)(205÷200),
= 1681,
= CI = 1681-1600 = 81->eqn1.
Next calculate CI on 1600 which is deposited after 6 months i.e. for 6 months.
= 1600(1+5÷200),
= 1600(205÷200),
= 1640.
= CI is = 1640-1600= 40->eqn2.
Add eqn1 and eqn2 we get;
= 81 + 40 = 121 this is the gain.
= 1600(205÷200)(205÷200),
= 1681,
= CI = 1681-1600 = 81->eqn1.
Next calculate CI on 1600 which is deposited after 6 months i.e. for 6 months.
= 1600(1+5÷200),
= 1600(205÷200),
= 1640.
= CI is = 1640-1600= 40->eqn2.
Add eqn1 and eqn2 we get;
= 81 + 40 = 121 this is the gain.
VINOD said:
8 years ago
CI CAN BE EXPRESSED IN TERMS OF SI.
IN THIS PROMBLEM,
FOR FIRST 6 MONTHS CALCULATE SI OF PRINCIPAL SINCE CI CALCULATED ON HALFYEARLY BASIS.
SI FOR 6 MONTHS = (1600 * (1/2)*5)/100 = 40.
CI FOR NEXT 6 MONTHS = (1600+40) * (1/2) * 5)/100 = 41,
TOTAL CI = 40 + 41 = 81.
SI FOR 6 MONTHS FROM JULY = (1600*(1/2)*5)/100 = 40,
TOTAL EARNING = 40 + 81 = 121.
IN THIS PROMBLEM,
FOR FIRST 6 MONTHS CALCULATE SI OF PRINCIPAL SINCE CI CALCULATED ON HALFYEARLY BASIS.
SI FOR 6 MONTHS = (1600 * (1/2)*5)/100 = 40.
CI FOR NEXT 6 MONTHS = (1600+40) * (1/2) * 5)/100 = 41,
TOTAL CI = 40 + 41 = 81.
SI FOR 6 MONTHS FROM JULY = (1600*(1/2)*5)/100 = 40,
TOTAL EARNING = 40 + 81 = 121.
Sam said:
8 years ago
As far, I know Compound Interest =p(1+r)^n, I can't understand how n=2?
Can anyone help me? Please.
Can anyone help me? Please.
Anubhab said:
8 years ago
@Sam.
As we know when interest is compounded half-yearly, we divide the rate by 2 and multiple the year(n) by 2.
As he deposits in Jan and bank gives interest half yearly so there so by the next year Jan there will be 2 r% interest which is the reason why n=2 and for the deposit in July he gets the only one which is the reason n=1.
Hope it helped.
As we know when interest is compounded half-yearly, we divide the rate by 2 and multiple the year(n) by 2.
As he deposits in Jan and bank gives interest half yearly so there so by the next year Jan there will be 2 r% interest which is the reason why n=2 and for the deposit in July he gets the only one which is the reason n=1.
Hope it helped.
Chandan anand said:
8 years ago
Here answer should be 244, because the total amount at the end of 6 months will be added to 1600. And so, the new P=A+1600.
solution:
for 6 months:
A=1600{1+(5/100)}^1
=1680
So for next 6 months:
P= 1680+1600=3280,
A=3280{1+(5/100)}^1.
=3444.
therefore, the total interest earned= 3444-3200 = 244.
solution:
for 6 months:
A=1600{1+(5/100)}^1
=1680
So for next 6 months:
P= 1680+1600=3280,
A=3280{1+(5/100)}^1.
=3444.
therefore, the total interest earned= 3444-3200 = 244.
Mahesh said:
8 years ago
A person lends certain money from bank at 10% compound interest. If he returns, Rs. 1600, Rs. 1500 and Rs. 4400 at the end of 1st, 2nd and 3rd year respectively to complete his loan. Find how much money he lends from the bank.
Please give solution for this.
Please give solution for this.
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