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 4 of 9.
Kajal said:
1 decade ago
Why are you using the formula of amount instead of C.I that means question is demanding for the difference of C.I rather the difference of amount.
Tarun said:
1 decade ago
When interest is compounded annually,
Amount = p[1+(r/100)]^t.
When interest is compounded half yearly,
Amount = p[1+(r/2x100)]^2t.
Amount = p[1+(r/100)]^t.
When interest is compounded half yearly,
Amount = p[1+(r/2x100)]^2t.
Varun said:
9 years ago
Just using a formula of the amount when the interest is compound half yearly, ie time =2n here n = 3/2 then,
2n = 3/2 * 2= 3.
2n = 3/2 * 2= 3.
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.
Sangeet said:
1 decade ago
Not understand this question. Why we multiply (1+(((1/2)*4)/100)?
Even I am not able understand the further steps.
Even I am not able understand the further steps.
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.
Roop said:
1 decade ago
@Akshay and @Arslan.
When time is in fraction that is 3/2 then the formula is:
A = P[(1+R/100)*{1+(R/2)/100).
When time is in fraction that is 3/2 then the formula is:
A = P[(1+R/100)*{1+(R/2)/100).
Dimple said:
2 years ago
Yearly
5000+4%+2% = 5304.
Half-yearly
5000 + 2% + 2% + 2% = 5306.04.
Therefore, the difference is 2.04.
5000+4%+2% = 5304.
Half-yearly
5000 + 2% + 2% + 2% = 5306.04.
Therefore, the difference is 2.04.
(40)
Sowmya` said:
1 decade ago
When time is in fraction formula changes as:
For ex time is: 1 1/2 years.
= p(1+r/100)^1*(1+(r/2)/100).
For ex time is: 1 1/2 years.
= p(1+r/100)^1*(1+(r/2)/100).
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