Question
A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
Answer: Option B
$$\eqalign{
& {\text{Amount}} \cr
& = {1600 \times {{\left( {1 + \frac{5}{{2 \times 100}}} \right)}^2} + 1600 \times \left( {1 + \frac{5}{{2 \times 100}}} \right)} \cr
& = {1600 \times \frac{{41}}{{40}} \times \frac{{41}}{{40}} + 1600 \times \frac{{41}}{{40}}} \cr
& = {1600 \times \frac{{41}}{{40}}\left( {\frac{{41}}{{40}} + 1} \right)} \cr
& = {\frac{{1600 \times 41 \times 81}}{{40 \times 40}}} \cr
& = Rs.\,3321 \cr
& \therefore C.I. = Rs.\,\left( {3321 - 3200} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,121 \cr} $$
Was this answer helpful ?
$$\eqalign{
& {\text{Amount}} \cr
& = {1600 \times {{\left( {1 + \frac{5}{{2 \times 100}}} \right)}^2} + 1600 \times \left( {1 + \frac{5}{{2 \times 100}}} \right)} \cr
& = {1600 \times \frac{{41}}{{40}} \times \frac{{41}}{{40}} + 1600 \times \frac{{41}}{{40}}} \cr
& = {1600 \times \frac{{41}}{{40}}\left( {\frac{{41}}{{40}} + 1} \right)} \cr
& = {\frac{{1600 \times 41 \times 81}}{{40 \times 40}}} \cr
& = Rs.\,3321 \cr
& \therefore C.I. = Rs.\,\left( {3321 - 3200} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,121 \cr} $$
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution