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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 8 of 9.
Krishna said:   8 years ago
The right ans = 3.06.

I agree @Stephen.
Ravi said:   2 decades ago
Why do we take 2 r in the half-yearly?
Mohit said:   10 years ago
Any short method without this formula?
Praveen Kumar C said:   8 years ago
Actually, the correct answer is 3.06.
Roop said:   1 decade ago
Why 1/2*4 instead of (1+4/100)^1/2 ?
Amar said:   4 years ago
I think the right Answer is 3.06.
(2)
SIMBIRO LELISA said:   3 years ago
Very good explanation, Thank you.
(1)
Gunjan Patidar said:   4 years ago
I too agree the answer is 3.06.
Vinay said:   7 years ago
The correct answer is 3.06.
King said:   8 years ago
The correct answer is 3.06.
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