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 7 of 22.
KISHOR said:
10 years ago
For half yearly basis (R) = 5/2 = 2.5%.
(2.5% of 1600)/100 = 1600*2.5. = 40
Customer has rs 1600 + 40 = 1640.
He again adds 1600 on 1st July so 1600 + 1640 = 3240.
(2.5% of 3240)/100 = 3240*2.5 = 81.
Therefore, total interest earned is 81 + 41 = 121.
(2.5% of 1600)/100 = 1600*2.5. = 40
Customer has rs 1600 + 40 = 1640.
He again adds 1600 on 1st July so 1600 + 1640 = 3240.
(2.5% of 3240)/100 = 3240*2.5 = 81.
Therefore, total interest earned is 81 + 41 = 121.
SPG said:
10 years ago
5/2 (since half yearly, had it been quarterly 5/4 or monthly 5/12).
= 2.5 => 100 + 2.5 = 102.5 => 102.5/100 = 1.025.
For 1st amount = 1600 * 1.025 * 1.025 = 1681.
For 2nd amount = 1600 * 1.025 = 1640.
Therefore interest earned 81 + 40 = 121.
= 2.5 => 100 + 2.5 = 102.5 => 102.5/100 = 1.025.
For 1st amount = 1600 * 1.025 * 1.025 = 1681.
For 2nd amount = 1600 * 1.025 = 1640.
Therefore interest earned 81 + 40 = 121.
Roman pearce said:
1 decade ago
First i did for one year then converted into half:
CI = 1600*5/100 = 80 for one year we want for 6 months then its = 40 for next half year.
CI = 1640+1600*5/100 = 164 one year but we want for 6 months then its = 81.
Total interest is 40+81 = 121.
CI = 1600*5/100 = 80 for one year we want for 6 months then its = 40 for next half year.
CI = 1640+1600*5/100 = 164 one year but we want for 6 months then its = 81.
Total interest is 40+81 = 121.
Nidhish said:
4 years ago
Guys.
Let's solve this in the traditional method.
Interest for first deposit
1600 * 25/1000 = 40.
Interest for second deposit + the amount for first deposit (intrest + deposit amount)
3240 * 25/1000 = 81.
Now adding both intrest we get 121.
Let's solve this in the traditional method.
Interest for first deposit
1600 * 25/1000 = 40.
Interest for second deposit + the amount for first deposit (intrest + deposit amount)
3240 * 25/1000 = 81.
Now adding both intrest we get 121.
(26)
Ashk said:
8 years ago
I think the first step is evaluated as follows:
That square term came from the half-yearly basis.
We have given for half year but we need to find for a full year. So we set n=2 (That is twice of half year) and n=1 for next case (half year).
That square term came from the half-yearly basis.
We have given for half year but we need to find for a full year. So we set n=2 (That is twice of half year) and n=1 for next case (half year).
Anusha said:
1 decade ago
Customer has deposited twice in a year. Once in the begining i.e on Jan 1st n 2nd time on july 1st i.e after 6 months.
So 1st case n=1(1 yr) & 2nd case n=1/2(half yr).
So you get first and 2nd terms coresponding 2 first and 2nd case.
So 1st case n=1(1 yr) & 2nd case n=1/2(half yr).
So you get first and 2nd terms coresponding 2 first and 2nd case.
Abdul wahab said:
9 years ago
Where the present value (pv) = 1600.
Rate: 5%/2.
Then, n:2 for 1st jan to dec and 1 for 1st jul to dec.
Therefore fv =1600 (1 + 0.025) ^2 + (1 + 0. 025).
= 1600 * 2. 07563.
= 3321.
Now the amount he would have is 3321 - 3200 = 121Rs.
Rate: 5%/2.
Then, n:2 for 1st jan to dec and 1 for 1st jul to dec.
Therefore fv =1600 (1 + 0.025) ^2 + (1 + 0. 025).
= 1600 * 2. 07563.
= 3321.
Now the amount he would have is 3321 - 3200 = 121Rs.
Priya said:
1 decade ago
Hello @Preeti.
In first case it is 1 year because its from 1st Jan to end of the year so its of 12 months = 1 year.
In sec case it is 1/2 year because its from 1st July to end of the year its of 6 months = 1/2 year.
Hope you ll get.
In first case it is 1 year because its from 1st Jan to end of the year so its of 12 months = 1 year.
In sec case it is 1/2 year because its from 1st July to end of the year its of 6 months = 1/2 year.
Hope you ll get.
Mahesh S said:
6 years ago
@All.
It's simple, first one is deposited on jan, the year n is 1, second one deposited on July which is half of one year, so year n is 1/2, just put this in the formula for compound interest half yearly you can get the answer.
It's simple, first one is deposited on jan, the year n is 1, second one deposited on July which is half of one year, so year n is 1/2, just put this in the formula for compound interest half yearly you can get the answer.
Gouthami said:
5 years ago
Simple trick: firstly for the half-year rate of interest would be half that is 2.5%.
2.5%of 1600 = 40.
This is compounded 1640 and again deposited another 1600 it becomes 3240.
Now 2.5%of 3240 = 81.
Finally, 81+ 40 = 121.
2.5%of 1600 = 40.
This is compounded 1640 and again deposited another 1600 it becomes 3240.
Now 2.5%of 3240 = 81.
Finally, 81+ 40 = 121.
(2)
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