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.
Sachin said:
1 decade ago
As per formula it should be,
C.I. when interest = 5304-5000 = 304
compounded yearly
C.I. when interest is = 5306.04-5000 = 306.04
compounded half-yearly
Difference = Rs. (306.04 - 304) = Rs. 2.04
C.I. when interest = 5304-5000 = 304
compounded yearly
C.I. when interest is = 5306.04-5000 = 306.04
compounded half-yearly
Difference = Rs. (306.04 - 304) = Rs. 2.04
Binnu said:
1 decade ago
According to the question no. of years=1 1/2 so it is equal to 3/2 just(2*1+1)/2
Manisha said:
1 decade ago
How we got 3/2 for half yearly for one and half year. please assist.
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
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.
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.
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.
Akshay said:
9 years ago
Direct formula for finding the amount of compound interest.
A = P( 1 + R*t/100)^n/t.
Where,
A : Amount ( principle + interest).
P : principle amount.
R : rate of interest in %.
t : number of years for interested is compounded.
n : number of years.
In above example,
For the half year compounded t=1/2.
Try this method.
Thanks.
A = P( 1 + R*t/100)^n/t.
Where,
A : Amount ( principle + interest).
P : principle amount.
R : rate of interest in %.
t : number of years for interested is compounded.
n : number of years.
In above example,
For the half year compounded t=1/2.
Try this method.
Thanks.
INDRANIL said:
9 years ago
If there is any shortcut formula for this? Please assist.
Chirpy said:
9 years ago
How does 26/25 & 51/50 come in the 2nd step?
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