Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - General Questions (Q.No. 13)
13.
The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:
Answer: Option
Explanation:
| S.I. = Rs |  |
1200 x 10 x 1 |  |
= Rs. 120. |
| 100 |
| C.I. = Rs. |  |
1200 x | |
1 + | 5 | |
2 | - 1200 |  |
= Rs. 123. |
| 100 |
Difference = Rs. (123 - 120) = Rs. 3.
Discussion:
53 comments Page 5 of 6.
Kundan kumar said:
1 decade ago
For taking difference we have to solve for either one year or half year.
Himesh said:
9 years ago
Why do we need to calculate amount?
According to the question they only asked for difference between CI and SI.
According to the question they only asked for difference between CI and SI.
Mani said:
1 decade ago
Why take rate 5 percent in compound interest formula same time you take si rate 10 percent. Please explain?
Richi said:
1 decade ago
Why in CI it is raised to 2 and not 1. => 2n= 2x(1/2) ?
Why SI calculated for yearly and not half yearly ?
Why SI calculated for yearly and not half yearly ?
Manimaran said:
1 decade ago
Please can you explain Why they used n=1 for SI And N=1/2 for C.I ?
Bharath said:
1 decade ago
Simple Interest (S.I.):
If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
So pnr/100 is used.
If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
So pnr/100 is used.
Akanksha said:
1 decade ago
Time is half yearly. So why in SI = 1200*10*1/(100*2) half yearly is not done.
And in CI 1200 should not be subtracted but to make as SI is calculated yearly, the amount of CI which is calculated half yearly should be doubled to be annually.
And in CI 1200 should not be subtracted but to make as SI is calculated yearly, the amount of CI which is calculated half yearly should be doubled to be annually.
Naveen said:
10 years ago
To calculating S.I, considering 1 year while calculating C.I using half yearly basis. Why?
Sandy said:
9 years ago
They asked us to find the diff b/w SI and CI for one year only. But the case is, the interest is credited every 6 month once i.e) half yearly.
Since interest is credited half yearly for an annum,
Compound interest = p[1+(r/2)/100]^2n, where n = 1 year.
S.I calculation is same. Because interest is gonna be constant.
Hope you are clear now.
Since interest is credited half yearly for an annum,
Compound interest = p[1+(r/2)/100]^2n, where n = 1 year.
S.I calculation is same. Because interest is gonna be constant.
Hope you are clear now.
Santhiya said:
9 years ago
Yeah. I'm clear. Out off all the above solutions, I could say yours is the best.
S.I calculation will be same if we calculate interest for 1 year & 10% or with summation of two six months with 5% interest. Right?
S.I calculation will be same if we calculate interest for 1 year & 10% or with summation of two six months with 5% interest. Right?
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