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 5 of 9.
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.
Lalit Rawat said:
9 years ago
When interest is compounded half yearly and time is in fraction.
A = P(1 + r/2 * 100)^2n.
A = P(1 + r/2 * 100)^2n.
Ronak soni said:
9 years ago
(1+2/100)^3 in this, why this cube is taken in half yearly?
SAIKUMAR said:
9 years ago
Compounded yearly:
P = 5000,
R = 4% -----> 200,
So, 5000 + 200 = 5200,
R = 2% -----> 104,
Then total = 5200 + 104 = 5304.
Compounded half-yearly:
P = 5000,
R = 2% -----> 100,
Then, 5000 + 100 = 5100,
R = 2% -----> 102,
Then, 5100 + 102 = 5202,
R = 2% -----> 104.04,
Total = 5202 + 104.04 = 5306.04.
And finally, 5304 - 5306.04 = 2.04.
P = 5000,
R = 4% -----> 200,
So, 5000 + 200 = 5200,
R = 2% -----> 104,
Then total = 5200 + 104 = 5304.
Compounded half-yearly:
P = 5000,
R = 2% -----> 100,
Then, 5000 + 100 = 5100,
R = 2% -----> 102,
Then, 5100 + 102 = 5202,
R = 2% -----> 104.04,
Total = 5202 + 104.04 = 5306.04.
And finally, 5304 - 5306.04 = 2.04.
(2)
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.
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.
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.
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers