Aptitude - Compound Interest - Discussion

Discussion Forum : Compound Interest - General Questions (Q.No. 4)

Compound Interest

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 +

x 4

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 9 of 9.

Sibatosh mahata said: 8 years ago

2.04 is the right answer.

(1)

ASHRAF said: 9 years ago

@Saikumar.

Why 2% taken?

Deepak said: 9 years ago

How to decide 4% rate?

Mehul said: 1 decade ago

Any shortcut method?

Prach said: 1 decade ago

How 51 come?

Post your comments here:

Quick links

Quantitative Aptitude

Verbal (English)

Reasoning

Programming

Interview

Placement Papers