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 3 of 9.
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)
Rajesh said:
7 years ago
C.I ON PER YEAR.
N=1,1/2 r=4%. P=5000.
1st year-- 5000 in 4% is = 200,
Next we need 1/2 year interest so r=4/2. R=2%,
Hence 5200 in 2% is = 204.
Hence interest is 200+100=304.
Then find half year interest.
N=3 i.e ::-:'(1*1/2 in 3 half year),
R=2 because (4%is full year but we need half yr),
5000 in 2% is =100,
5100 in 2%is =102,
5202 in 2%is =104.04,
Total = 306.04.
Hence(half year - 1year) = 306.04 - 304.
Ans = 2.04.
N=1,1/2 r=4%. P=5000.
1st year-- 5000 in 4% is = 200,
Next we need 1/2 year interest so r=4/2. R=2%,
Hence 5200 in 2% is = 204.
Hence interest is 200+100=304.
Then find half year interest.
N=3 i.e ::-:'(1*1/2 in 3 half year),
R=2 because (4%is full year but we need half yr),
5000 in 2% is =100,
5100 in 2%is =102,
5202 in 2%is =104.04,
Total = 306.04.
Hence(half year - 1year) = 306.04 - 304.
Ans = 2.04.
(1)
Dheeraj kumar said:
7 years ago
When compounded half yearly there is 3 half year will be formed then it must be divided in rate also i.e. 4/3 and then we apply the power as 3. Can anyone please help?
Vinay said:
7 years ago
The correct answer is 3.06.
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.
INDHU said:
8 years ago
If calculated for half year we should take rate/200 right?
Then why rate/100 is taken?
Then why rate/100 is taken?
(1)
Sibatosh mahata said:
8 years ago
2.04 is the right answer.
(1)
Maggi said:
8 years ago
Yes, correct @Saikumar.
4% yearly given in ques. For half year 4/2 =2%.
4% yearly given in ques. For half year 4/2 =2%.
King said:
8 years ago
The correct answer is 3.06.
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.
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