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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C.I. = Rs. (3321 - 3200) = Rs. 121
Discussion:
220 comments Page 20 of 22.
Anand said:
8 years ago
The difference between simple interest and compound interest to be compounded annually from the annual interest rate of 16% for 2 years on a fixed amount is 320.
Anu said:
8 years ago
Thank you @Anusha.
Swathi said:
8 years ago
As per formula, S=p*(1+r/200)^2n.Where r=rate of interest per annum. Why we have taken 5/200 there.
As they didn't give rate of interest they gave compound interest.
As they didn't give rate of interest they gave compound interest.
Suhani said:
7 years ago
I am not at all able to understand the whole sum. Please, someone, help me.
Rahul Singh said:
7 years ago
r=5/2%=1/40.
If p=40 then A=41 ..(bcz t=6 months=1 half yr); CI1=Rs1*40=Rs 40,
again,p=1600 then A=1681...(because t=12 months=2half yr);CI2=Rs 81,
net CI=Rs(81+40)=Rs121.
If p=40 then A=41 ..(bcz t=6 months=1 half yr); CI1=Rs1*40=Rs 40,
again,p=1600 then A=1681...(because t=12 months=2half yr);CI2=Rs 81,
net CI=Rs(81+40)=Rs121.
Shubham said:
7 years ago
I think the answer is not 121. It's 122. Because here 5% in not annually, it is half yearly. It is clearly mentioned in the question. Am I right?
Ashok raj said:
7 years ago
@All.
An interest usually is given year base so here calculated compounded half yearly that's why to split interest in two parts first 2.5 on 1600 is 40 and after 6 months he invested again 1600 total 3200 so 2.5 on 3200 is 80 and comp interest means interest on previous year 2.5 on 40 is 1 total interest is 40+80+1=121.
An interest usually is given year base so here calculated compounded half yearly that's why to split interest in two parts first 2.5 on 1600 is 40 and after 6 months he invested again 1600 total 3200 so 2.5 on 3200 is 80 and comp interest means interest on previous year 2.5 on 40 is 1 total interest is 40+80+1=121.
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.
Ankur Banerjee said:
7 years ago
Why the value of n is 2?
Yamini Dhanasekar said:
7 years ago
We can also solve it by basic SI formula.
PNR/100.
Customer deposits 1600 twice in a year.
In a first 1/2 yr,p=1600,n=1/2,r=5%,
interest is..1600x1x5 / 2x100 = 40,
In a second 1/2 yr, p becomes 1640,
Interest=1640x1x5 / 2x100 =41,
So interest gained by amount deposited on;
January at the end of yr=81,
And,1600 is deposited on july,again same procedure.
I = 1600 x 1 x 5/2x100 = 40.
So, 81 + 40 = 121.
PNR/100.
Customer deposits 1600 twice in a year.
In a first 1/2 yr,p=1600,n=1/2,r=5%,
interest is..1600x1x5 / 2x100 = 40,
In a second 1/2 yr, p becomes 1640,
Interest=1640x1x5 / 2x100 =41,
So interest gained by amount deposited on;
January at the end of yr=81,
And,1600 is deposited on july,again same procedure.
I = 1600 x 1 x 5/2x100 = 40.
So, 81 + 40 = 121.
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