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 |
|
|||||||||||||||
|
||||||||||||||||
| = Rs. 5304. |
| C.I. when interest is compounded half-yearly |
|
||||||||||||
|
|||||||||||||
| = Rs. 5306.04 |
Difference = Rs. (5306.04 - 5304) = Rs. 2.04
Discussion:
85 comments Page 9 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
Ravi said:
2 decades ago
Why do we take 2 r in the half-yearly?
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers