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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: |
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Answer» <P>For january it will be CALCULATED as CI = P ( 1 + r/100)^t P = 1600 r = 5% half yearly = 1600 ( 1 + 5/100)^2 = 1600 (1 + 1/20)^2 = 1600 * 21/20 * 21/20 CI for january at the end if the year = 1764 For july it will be calculated as CI = P ( 1 + r/100)^t P = 1600 r = 5% half yearly t = 1 half year = 1600 ( 1 + 5/100)^1 = 1600 (1 + 1/20) = 1600 * 21/20 = 1680 CI for july at the end if the year = 1680 total amount would be 1764 + 1680 = 3444 |
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