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Aptitude - Compound Interest - Discussion

Discussion Forum : Compound Interest - General Questions (Q.No. 4)
Compound Interest
4.
What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?
Rs. 2.04
Rs. 3.06
Rs. 4.80
Rs. 8.30
Answer: Option
Explanation:

C.I. when interest
compounded yearly    
= Rs. 5000 x 1 + 4 x 1 + x 4
100 100
= Rs. 5000 x 26 x 51
25 50
= Rs. 5304.

C.I. when interest is
compounded half-yearly
= Rs. 5000 x 1 + 2 3
100
= Rs. 5000 x 51 x 51 x 51
50 50 50
= Rs. 5306.04

Difference = Rs. (5306.04 - 5304) = Rs. 2.04

Discussion:
85 comments Page 7 of 9.
Mahalakshmi said:   9 years ago
What is compound interest formula?

First describe it for me.
Ronak soni said:   9 years ago
(1+2/100)^3 in this, why this cube is taken in half yearly?
Qutub said:   1 decade ago
How "C. I. When interest compounded yearly" is calculated?
NEERAJ said:   9 years ago
Yes @Stephen.

I too think the option (b) is the answer.
INDRANIL said:   9 years ago
If there is any shortcut formula for this? Please assist.
Preethu said:   8 years ago
What formula are they using for calculating C.I annually?
Deepthi said:   1 decade ago
What is the actual equation for CI calculated annually?
Chirpy said:   9 years ago
How does 26/25 & 51/50 come in the 2nd step?
S.Naveen said:   6 years ago
I didn't understand this, please explain me.
Priya said:   9 years ago
@Rajjan.

How you got this? Please explain.
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