Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - General Questions (Q.No. 4)
4.
What is the difference between the compound interests on Rs. 5000 for 1
years at 4% per annum compounded yearly and half-yearly?
years at 4% per annum compounded yearly and half-yearly?
Answer: Option
Explanation:
| C.I. when interest compounded yearly |
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| = Rs. 5304. |
| C.I. when interest is compounded half-yearly |
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| = Rs. 5306.04 |
Difference = Rs. (5306.04 - 5304) = Rs. 2.04
Discussion:
85 comments Page 1 of 9.
Ravi said:
2 decades ago
Why do we take 2 r in the half-yearly?
Anjali said:
1 decade ago
Hello,
Since Compound Interest (C.I.) = p[1+{(r/2)/(100)}]^2n for half yearly
Thus,
C.I.= 5000[1+{(4/2)/(100)}]^{2*(3/2)}
=5000[1+{2/100}]^(3)
=5306.04
Since Compound Interest (C.I.) = p[1+{(r/2)/(100)}]^2n for half yearly
Thus,
C.I.= 5000[1+{(4/2)/(100)}]^{2*(3/2)}
=5000[1+{2/100}]^(3)
=5306.04
Manisha said:
1 decade ago
How we got 3/2 for half yearly for one and half year. please assist.
Binnu said:
1 decade ago
According to the question no. of years=1 1/2 so it is equal to 3/2 just(2*1+1)/2
Sachin said:
1 decade ago
As per formula it should be,
C.I. when interest = 5304-5000 = 304
compounded yearly
C.I. when interest is = 5306.04-5000 = 306.04
compounded half-yearly
Difference = Rs. (306.04 - 304) = Rs. 2.04
C.I. when interest = 5304-5000 = 304
compounded yearly
C.I. when interest is = 5306.04-5000 = 306.04
compounded half-yearly
Difference = Rs. (306.04 - 304) = Rs. 2.04
Manikanta said:
1 decade ago
What about the Compound interest per year?
Why do we take [ 1/2 * 4 ] ?
Why do we take [ 1/2 * 4 ] ?
Mehul said:
1 decade ago
Any shortcut method?
Deekshit said:
1 decade ago
But the given question is difference b/w year and and half-yearly not as one and half-yearly so the answer is 2.04.
Srimoyee said:
1 decade ago
The formula is slightly incorrect. Amount = P(1+R/100)^1 + [1+(1/2*R)/100] then C.I = AMOUNT - SUM.
Same is in the case of half-yearly.
Amount = P(1+R/200)^2*3/2.
THEN CI = AMOUNT - SUM.
Same is in the case of half-yearly.
Amount = P(1+R/200)^2*3/2.
THEN CI = AMOUNT - SUM.
Ritesh kasat said:
1 decade ago
p(1+r/100)^n is value of amount and not compound interest.
However if we subtract two amounts, since the principal remains same, we will still get the difference between compound interest only.
However if we subtract two amounts, since the principal remains same, we will still get the difference between compound interest only.
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