A bank offers 20% compound interest per half year. A customer deposits Rs 6000 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 7680 B) Rs 3840 C) Rs 1920 D) Rs 960
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Answer:
r = 20%, P = Rs 6000 Jan and July
n1 = 2, n2 = 1
CI = C.I. 1 + C.I. 2
C.I. 1 = P[(1+r/100)²ⁿ - 1]
=> 6000 [ (1+20/100)² - 1]
=> 6000 [ (1 + 1/5)² - 1]
=> 6000 [ (6/5)² - 1]
=> 6000 [(6/5)² - 1]
=> 6000 (0.44)
=> Rs 2640
C.I. 2 = 6000 [ (1 + 20/100)¹ - 1 ]
=> 6000 (6/5 - 1)
=> 6000 (1.2 - 1)
=> 6000 (0.2)
=> 1200
therefore total C.I. = 2640 + 1200
=> Rs 3840 option B
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