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 6 of 9.
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?
Ayan Guchhait said:
1 decade ago
If the calculator is not provided.
Then short cut (same as Given Solution).
For yearly (Amount+compound interest) = A (1 + [r/100]) ^ 3/2 A = 5000; are = 4.
= A (1 + [r/100]) ^ (1+1/2).
= A (1 + [r/100]) * (1 +[r/100] ^ (1/2)).
= A (1 + [r/100]) * (1 + 1/2[r/100]).
For half yearly (Amount +compound interest) =A (1 +[(r/2) /100]) ^ (3/2*2).
Then short cut (same as Given Solution).
For yearly (Amount+compound interest) = A (1 + [r/100]) ^ 3/2 A = 5000; are = 4.
= A (1 + [r/100]) ^ (1+1/2).
= A (1 + [r/100]) * (1 +[r/100] ^ (1/2)).
= A (1 + [r/100]) * (1 + 1/2[r/100]).
For half yearly (Amount +compound interest) =A (1 +[(r/2) /100]) ^ (3/2*2).
Manohar said:
1 decade ago
Hello friends.
Thank you for sharing your views about that problem.
Thank you for sharing your views about that problem.
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.
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.
Prach said:
1 decade ago
How 51 come?
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).
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?
Stephen hawking said:
1 decade ago
Correct answer is 3.06.
CI 1 = 302.98 (not 304) and CI 2 = 306.04.
CI 1 = 302.98 (not 304) and CI 2 = 306.04.
Gurpreet said:
1 decade ago
For yearly A = P[(1+R/100)*{1+(R/2)/100).
Then CI =A-P =304.
For half-yearly A = P(1+(R/2)/100)^3.
Then CI =A-P =306.04.
After that difference = CI(half yearly)-CI(yearly) = [(306.04)-304] = 2.04.
Then CI =A-P =304.
For half-yearly A = P(1+(R/2)/100)^3.
Then CI =A-P =306.04.
After that difference = CI(half yearly)-CI(yearly) = [(306.04)-304] = 2.04.
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