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 9 of 9.
Stephen hawking said:
1 decade ago
Correct answer is 3.06.
CI 1 = 302.98 (not 304) and CI 2 = 306.04.
CI 1 = 302.98 (not 304) and CI 2 = 306.04.
Gurpreet said:
1 decade ago
For yearly A = P[(1+R/100)*{1+(R/2)/100).
Then CI =A-P =304.
For half-yearly A = P(1+(R/2)/100)^3.
Then CI =A-P =306.04.
After that difference = CI(half yearly)-CI(yearly) = [(306.04)-304] = 2.04.
Then CI =A-P =304.
For half-yearly A = P(1+(R/2)/100)^3.
Then CI =A-P =306.04.
After that difference = CI(half yearly)-CI(yearly) = [(306.04)-304] = 2.04.
Aswathi said:
1 decade ago
Explanation for the amount when compounded yearly is as below:
We learn from our formulas that when interest is compounded, annually but time is in fraction then it should be:
Amount = P*(1+r/100)^1*(1+(1/2*4)/100).
Please check general formula section 5.
We learn from our formulas that when interest is compounded, annually but time is in fraction then it should be:
Amount = P*(1+r/100)^1*(1+(1/2*4)/100).
Please check general formula section 5.
Deepthi said:
1 decade ago
What is the actual equation for CI calculated annually?
Deepthi said:
1 decade ago
How can we multiply 1/2 along with 4/100 when compounded annually?
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