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 2 of 9.
Sangeetha said:
8 years ago
Correct answer is 3.06.
When the interest is calculated annually, we cannot assume the interest for a half year to be 2%.
Hence C.I for 1.5 years should be calculated with n=3/2 and not R=r/2.
C.I (annually) - C.I (half-yearly) = 5306.04-5302.98 - 3.06.
When the interest is calculated annually, we cannot assume the interest for a half year to be 2%.
Hence C.I for 1.5 years should be calculated with n=3/2 and not R=r/2.
C.I (annually) - C.I (half-yearly) = 5306.04-5302.98 - 3.06.
Tillu said:
3 years ago
The issue is for 1 year.
I can understand the time n =1 but isn't it suppose to be 2x1 (2xn) for a half year but instead, they are taking 1 (1/2), which means they are taking a period of 1 and half years for calculating half-year compound interest.
I can understand the time n =1 but isn't it suppose to be 2x1 (2xn) for a half year but instead, they are taking 1 (1/2), which means they are taking a period of 1 and half years for calculating half-year compound interest.
(3)
Vinay said:
8 years ago
The exact ans is as follows,
Formula for CI = A - P.
A - AMOUNT,
P - Principle 1/2*4 = 2.
= (5000*(1+4/100)^1*(1+2/100)= 5304,
Then for only half year 5000*(1+2/100) = 5100,
Difference = 5304-5100 = 204 finally u divide by 100 I will get 2.04.
Formula for CI = A - P.
A - AMOUNT,
P - Principle 1/2*4 = 2.
= (5000*(1+4/100)^1*(1+2/100)= 5304,
Then for only half year 5000*(1+2/100) = 5100,
Difference = 5304-5100 = 204 finally u divide by 100 I will get 2.04.
Krishna said:
7 years ago
If compound interest is calculated in yearly then compound interest is 302.98 i.e 303.
Compound interest=5000[(1+4/100)^1.5-1].
=302.98 i.e 303.
So, the calculation of compound interest in yearly is wrong.
Compound interest=5000[(1+4/100)^1.5-1].
=302.98 i.e 303.
So, the calculation of compound interest in yearly is wrong.
Mhaske omkar said:
4 years ago
1*1/2 means 3/2 means 18 months.
Calculate C.I. for half-yearly 3 times add them which will be 306.04.
Calculate C.I. for yearly then add the first half-yearly C.I. which will be 200+104 = 304.
Calculate the difference of both is 2.04.
Calculate C.I. for half-yearly 3 times add them which will be 306.04.
Calculate C.I. for yearly then add the first half-yearly C.I. which will be 200+104 = 304.
Calculate the difference of both is 2.04.
(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
Gurpreet said:
1 decade ago
For yearly A = P[(1+R/100)*{1+(R/2)/100).
Then CI =A-P =304.
For half-yearly A = P(1+(R/2)/100)^3.
Then CI =A-P =306.04.
After that difference = CI(half yearly)-CI(yearly) = [(306.04)-304] = 2.04.
Then CI =A-P =304.
For half-yearly A = P(1+(R/2)/100)^3.
Then CI =A-P =306.04.
After that difference = CI(half yearly)-CI(yearly) = [(306.04)-304] = 2.04.
Divya said:
1 decade ago
Compound interest indicates interest on interest.
So we can calculate it as:
CI1 = 5000*(4/100)*1 = 200.
But I don't know to calculate, CI2 for 1/2 year.
Such that compound interest CI = CI1+CI2.
So we can calculate it as:
CI1 = 5000*(4/100)*1 = 200.
But I don't know to calculate, CI2 for 1/2 year.
Such that compound interest CI = CI1+CI2.
Sai said:
6 years ago
The yearly compound interest in traditional manner 1st 6mnths is 5000* 4/100 = 200. And 2nd 6months is 5200 * 4/100 = 208 the if we add both 200+208=408 how come it's 304?
Can anybody explain it?
Can anybody explain it?
(1)
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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