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 |
|
||||||||||||||||
|
|||||||||||||||||
|
|||||||||||||||||
|
|||||||||||||||||
| = Rs. 3321. |
C.I. = Rs. (3321 - 3200) = Rs. 121
Discussion:
220 comments Page 8 of 22.
Expert said:
1 decade ago
1st half 1600. After half half yr @2.5% 40 so total 1640.
2nd half 1640+1600 = 3240 so after 1yr 3321.
Gain 3321-3200 = 121.
2nd half 1640+1600 = 3240 so after 1yr 3321.
Gain 3321-3200 = 121.
Mzcool said:
1 decade ago
What is the difference between simple interest and compound interest?
Ravi said:
1 decade ago
Hey guys what formula use for this? please help me.
Kasinath @Hyd said:
1 decade ago
Since Bank offers compound interest on HALF YEARLY basis: so convert 1 Year into two Half years. so, use only half year formula.
Half Year formula: (1+ R/2*100)^2n.
1 year = Half Year + Half Year.
=>(1+ R/2*100)^2*1 n=1 is bcoz (1/2 +1/2).
Half year = (1+ R/2*100)^1 1 is bcoz (2*1/2) here n=1/2.
Half Year formula: (1+ R/2*100)^2n.
1 year = Half Year + Half Year.
=>(1+ R/2*100)^2*1 n=1 is bcoz (1/2 +1/2).
Half year = (1+ R/2*100)^1 1 is bcoz (2*1/2) here n=1/2.
Siva nandi reddy said:
1 decade ago
There is no formula to get the answer.
Simple logic is there that,
For 1 year 80/- is the interest then half of that amt is 40/- for half year.
So next half year for Jan amount 40/- and 1/- (it is obtained on first half interest). So total is 81/-.
and for July amt 40 because it is also half year, So the total is 121/-.
Simple logic is there that,
For 1 year 80/- is the interest then half of that amt is 40/- for half year.
So next half year for Jan amount 40/- and 1/- (it is obtained on first half interest). So total is 81/-.
and for July amt 40 because it is also half year, So the total is 121/-.
Aramide Akintmehin said:
1 decade ago
Please why did you multiply the 100 by 2.
Srikanth said:
1 decade ago
He deposited 1600 for 1/2 year but our question he asks yearly so 1600+1600 = 3200.
Giri said:
1 decade ago
When interest is compound half quarterly.
Amount = p[(1+(r/2)/100]^2n.
So amount = 1600[1+(5/2)/100]^2.
Simplify above equation, we get,
Amount = 1600[1+5/2*100]^2.
Amount = p[(1+(r/2)/100]^2n.
So amount = 1600[1+(5/2)/100]^2.
Simplify above equation, we get,
Amount = 1600[1+5/2*100]^2.
Purnika said:
1 decade ago
Why we are supposed to add the compound interest for half year and one year to get the amount and why C.I. = (3321-3200)?
Iovd said:
1 decade ago
@Purnika.
They have calculated CI for 1 year not for 1/2 year see carefully.
They have calculated CI for 1 year not for 1/2 year see carefully.
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers