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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 20 of 22.
Lavanya said:   1 decade ago
I too dint understand d first step
Kumar said:   1 decade ago
I didn't understand someone help me.
Harry said:   1 decade ago
Will someone explain the first step?
Siri said:   1 decade ago
What is formula for simple interest?
Beaulah abigail said:   10 years ago
Someone please explain the question.
Sirisha said:   10 years ago
How come 81/40? Can any one explain?
Dinesh said:   1 decade ago
Can anyone clear me the first step.
Sharmi said:   1 decade ago
Any shortcut to solve this problem?
Chi said:   9 years ago
@Jyoti thanks. Very well explained.
Prashu said:   7 years ago
How come 2*100?

Please explain me.
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