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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| = Rs. 3321. |
C.I. = Rs. (3321 - 3200) = Rs. 121
Discussion:
220 comments Page 9 of 22.
Lesner said:
9 years ago
Only see the remaining year from starting date of deposit and multiplication done according to that value. As year remains from 1 Jan is 1 while from 1 July is 1/2. This is the main concept.
Mangesh said:
1 decade ago
From 1st Jan to next 1st Jan i.e n=1(12 months)
C.I.1= 1600[1+(5/2*100)]^(2*1)
Now from 1st July to 1st Jan i.e n=1/2(6 months)
C.I.2= 1600[1+(5/2*100)]^(2*1/2)
C.I.=C.I.1 + C.I.2
C.I.1= 1600[1+(5/2*100)]^(2*1)
Now from 1st July to 1st Jan i.e n=1/2(6 months)
C.I.2= 1600[1+(5/2*100)]^(2*1/2)
C.I.=C.I.1 + C.I.2
Vicky said:
1 decade ago
Shortcut guys,
1600*5/100*6/12 = 40 then after 6 months 1600+1600 = 3200 & also 40 will be interest calculate.
3200*5/100*6/12 = 80.
40*5/100*6/12 = 1.
= 40+80+1 = 121 Answer.
1600*5/100*6/12 = 40 then after 6 months 1600+1600 = 3200 & also 40 will be interest calculate.
3200*5/100*6/12 = 80.
40*5/100*6/12 = 1.
= 40+80+1 = 121 Answer.
Revant Borawat said:
9 years ago
Annually rate 5%.
for 1st installment 2.5 * 2.5 + 0.625 = 5.0625.
Amount=1681.
For 2nd 40 ÷ 1600 * 41 = 1640,
3321 - 3200 = 121.
for 1st installment 2.5 * 2.5 + 0.625 = 5.0625.
Amount=1681.
For 2nd 40 ÷ 1600 * 41 = 1640,
3321 - 3200 = 121.
Kunal said:
9 years ago
Here is a very simple method.
1600 * 5 * 1/2 * 100 = 40.
Now the amount you have on 1st July is 1600 + (1600 + 40) = 3240.
So.
3240 * 5 * 1/2 * 100 = 81.
Now add 40 + 81 = 121.
1600 * 5 * 1/2 * 100 = 40.
Now the amount you have on 1st July is 1600 + (1600 + 40) = 3240.
So.
3240 * 5 * 1/2 * 100 = 81.
Now add 40 + 81 = 121.
Nandha kumar said:
6 years ago
A = P (1 + r/n) ^nt.
A = Final amount.
P = Initial principal balance.
R = Interest rate.
N = Number of times interest applied per time period.
T = Number of time periods elapsed.
A = Final amount.
P = Initial principal balance.
R = Interest rate.
N = Number of times interest applied per time period.
T = Number of time periods elapsed.
Sylvester said:
5 years ago
A = P (1 + r/n) ^nt.
A = Final amount.
P = Initial principal balance.
R = Interest rate.
N = Number of times interest applied per time period.
T = Number of time periods elapsed.
A = Final amount.
P = Initial principal balance.
R = Interest rate.
N = Number of times interest applied per time period.
T = Number of time periods elapsed.
Nidhi said:
1 decade ago
Thanks @Anu you explain it nicely.
Here half yearly means every six months so the amount of 1600 is submitted two times so that it become 3200.
Thank you all have a good day.
Here half yearly means every six months so the amount of 1600 is submitted two times so that it become 3200.
Thank you all have a good day.
S Simadri said:
9 years ago
Easy trick : compounded half yrly so 5%\2 = 2.5%.
1st half year interest : 2.5 % of 1600 = 40.
2nd half year intrest : 2.5% of 3200 + 2.5% of 40 = 81. Then CI is 40 + 81 = 121.
1st half year interest : 2.5 % of 1600 = 40.
2nd half year intrest : 2.5% of 3200 + 2.5% of 40 = 81. Then CI is 40 + 81 = 121.
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.
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