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 7 of 9.
Krishna said:
7 years ago
If compound interest is calculated in yearly then compound interest is 302.98 i.e 303.
Compound interest=5000[(1+4/100)^1.5-1].
=302.98 i.e 303.
So, the calculation of compound interest in yearly is wrong.
Compound interest=5000[(1+4/100)^1.5-1].
=302.98 i.e 303.
So, the calculation of compound interest in yearly is wrong.
Vinay said:
7 years ago
The correct answer is 3.06.
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?
Rajesh said:
7 years ago
C.I ON PER YEAR.
N=1,1/2 r=4%. P=5000.
1st year-- 5000 in 4% is = 200,
Next we need 1/2 year interest so r=4/2. R=2%,
Hence 5200 in 2% is = 204.
Hence interest is 200+100=304.
Then find half year interest.
N=3 i.e ::-:'(1*1/2 in 3 half year),
R=2 because (4%is full year but we need half yr),
5000 in 2% is =100,
5100 in 2%is =102,
5202 in 2%is =104.04,
Total = 306.04.
Hence(half year - 1year) = 306.04 - 304.
Ans = 2.04.
N=1,1/2 r=4%. P=5000.
1st year-- 5000 in 4% is = 200,
Next we need 1/2 year interest so r=4/2. R=2%,
Hence 5200 in 2% is = 204.
Hence interest is 200+100=304.
Then find half year interest.
N=3 i.e ::-:'(1*1/2 in 3 half year),
R=2 because (4%is full year but we need half yr),
5000 in 2% is =100,
5100 in 2%is =102,
5202 in 2%is =104.04,
Total = 306.04.
Hence(half year - 1year) = 306.04 - 304.
Ans = 2.04.
(1)
Sai said:
6 years ago
The yearly compound interest in traditional manner 1st 6mnths is 5000* 4/100 = 200. And 2nd 6months is 5200 * 4/100 = 208 the if we add both 200+208=408 how come it's 304?
Can anybody explain it?
Can anybody explain it?
(1)
S.Naveen said:
6 years ago
I didn't understand this, please explain me.
Aashu patel said:
6 years ago
Short cut method:
Rate given - 4%.
CI for yearly,
4%=1/25(first year).
2%=1/50(6 month)(rate divided by 2).
25:26.
50:51.
1250: 1326 //(25*50)and (26*51).
1250x=5000.
So x = 4,
CI = 1326*4 = 5304.
CI for half-yearly,
2% = 1/50(rate divided by 2).
50:51
50:51
50:51
125000:132651 //(50*50*50) and (51*51*51).
125000x = 5000.
x = 0.04.
So 0.04*132651=5306.04
So difference is 5306.04 - 5304=2.04(answer).
Rate given - 4%.
CI for yearly,
4%=1/25(first year).
2%=1/50(6 month)(rate divided by 2).
25:26.
50:51.
1250: 1326 //(25*50)and (26*51).
1250x=5000.
So x = 4,
CI = 1326*4 = 5304.
CI for half-yearly,
2% = 1/50(rate divided by 2).
50:51
50:51
50:51
125000:132651 //(50*50*50) and (51*51*51).
125000x = 5000.
x = 0.04.
So 0.04*132651=5306.04
So difference is 5306.04 - 5304=2.04(answer).
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)
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)
Gunjan Patidar said:
4 years ago
I too agree the answer is 3.06.
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