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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 19 of 22.
Abi said:   9 years ago
@Mon Doley.

Thanks, you done a great job.
Siba nanda said:   8 years ago
Please tell me why you have taken 5/2*100?
Sukumar said:   1 decade ago
I can't understand

[1600*41/40(41/40+1)]
Aramide Akintmehin said:   1 decade ago
Please why did you multiply the 100 by 2.
Vishal said:   5 years ago
@Amit.

1 year formula is p(1+R/100) ^n.
(1)
S. GANESH BABU said:   8 years ago
Very smart explanation, thanks @Brijesh.
Nishant said:   9 years ago
Thanks @Amit, @Jyoti and @Nil.Dhongde.
Nandhakumar said:   1 decade ago
Now only I understood. Thanks anusha.
Aps said:   10 years ago
I don't understand please explain it.
Sathish said:   9 years ago
@Yamini. Read the question carefully.
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