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 |
|
|||||||||||||||
|
||||||||||||||||
| = Rs. 5304. |
| C.I. when interest is compounded half-yearly |
|
||||||||||||
|
|||||||||||||
| = Rs. 5306.04 |
Difference = Rs. (5306.04 - 5304) = Rs. 2.04
Discussion:
85 comments Page 3 of 9.
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.
Ranjeeta said:
1 decade ago
When the interest is compounded yearly, for that A = P(1+r/100)^t.
= 5000(1+4/100)^1.5 = 5302.98.
But here's what they have done I am not getting it for yearly compounding?
= 5000(1+4/100)^1.5 = 5302.98.
But here's what they have done I am not getting it for yearly compounding?
Faiz said:
11 months ago
The formula is amount=P+C. I.
Then if we have to find C. I mean, it should be like C. I=amount-P, right?
But here they didn't put 1, can someone teach me this part of thought?
Then if we have to find C. I mean, it should be like C. I=amount-P, right?
But here they didn't put 1, can someone teach me this part of thought?
(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?
Keya said:
10 years ago
If the year was 5 and 1/2 years instead of 3/2 years for annual compound interest then what should be the equation?
A = P[(1+R/100)^5*{1+ (R/2) /100). Is it correct?
A = P[(1+R/100)^5*{1+ (R/2) /100). Is it correct?
Paulami saha said:
5 years ago
When interest is compounded yearly then we calculate the time = 1 1/2.
When interest is compounded half-yearly, then we calculate the time = (1 1/2)/2 = 3/2*2=3.
When interest is compounded half-yearly, then we calculate the time = (1 1/2)/2 = 3/2*2=3.
(1)
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
Mamta Dahal said:
4 years ago
By the question;
CI yearly - CI half yearly.
P((1+R÷100)^n-1)- p((1+R÷200)^n)-1).
= 5000((1+4÷100)^3÷2-1)-5000((1+4÷200)^3-1).
= 306.04-302.98.
= 3.06.
CI yearly - CI half yearly.
P((1+R÷100)^n-1)- p((1+R÷200)^n)-1).
= 5000((1+4÷100)^3÷2-1)-5000((1+4÷200)^3-1).
= 306.04-302.98.
= 3.06.
(1)
Nikhil said:
4 years ago
We can do the same thing for both C.I.
We don't need to do extra stuff like 3/2 and all just try I got my answer correctly without using this method.
We don't need to do extra stuff like 3/2 and all just try I got my answer correctly without using this method.
Laurianne Isaac said:
3 years ago
Since compound interest (CI= p(1+(1/2)/100)}] ^2n for half year
Thus:
CI= 5000[1+{(4/2)/(100)}]^(2*(3/2)]
= 5000[1+{2/100}]^(3).
= 5306.04.
Thus:
CI= 5000[1+{(4/2)/(100)}]^(2*(3/2)]
= 5000[1+{2/100}]^(3).
= 5306.04.
(3)
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers