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:

[A].	Rs. 120
[B].	Rs. 121
[C].	Rs. 122
[D].	Rs. 123

Answer: Option B

Explanation:

Amount

= Rs.

1600 x

1 +

+ 1600 x

1 +

2 x 100

= Rs.		1600 x	41	x	41	+ 1600 x	41
			40		40		40

= Rs.		1600 x	41		41	+ 1
			40		40

= Rs.		1600 x 41 x 81
		40 x 40

= Rs. 3321.

C.I. = Rs. (3321 - 3200) = Rs. 121

Aptitude :: Compound Interest : More Exercises

Compound Interest - General Questions

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:

Aptitude :: Compound Interest : More Exercises

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