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.
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.
Deepak said:
9 years ago
How to decide 4% rate?
ASHRAF said:
9 years ago
@Saikumar.
Why 2% taken?
Why 2% taken?
Mahalakshmi said:
9 years ago
What is compound interest formula?
First describe it for me.
First describe it for me.
Rajjan khan said:
9 years ago
Best way.
Reffective for yearly = 6.08%,
Reffective for half yearly = 6.1208,
Difference = .0408%,
5000 *.0408/100 = 2.04.
Reffective for yearly = 6.08%,
Reffective for half yearly = 6.1208,
Difference = .0408%,
5000 *.0408/100 = 2.04.
Rajjan khan said:
9 years ago
Best way.
Reffective for yearly = 6.08%,
Reffective for half yearly = 6.1208,
Difference = .0408%,
5000 *.0408/100 = 2.04.
Reffective for yearly = 6.08%,
Reffective for half yearly = 6.1208,
Difference = .0408%,
5000 *.0408/100 = 2.04.
NEERAJ said:
9 years ago
Yes @Stephen.
I too think the option (b) is the answer.
I too think the option (b) is the answer.
Priya said:
9 years ago
@Rajjan.
How you got this? Please explain.
How you got this? Please explain.
Krishna said:
8 years ago
The right ans = 3.06.
I agree @Stephen.
I agree @Stephen.
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.
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