Question

A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits 1600 each on 1st January and 1st July of a year. What will be the interest at the end of the year, he would have gained.

Answer 1

Step-by-step explanation:

Option B

Explanation:

Amount

= Rs. 1600 x 1 + 5 2 + 1600 x 1 + 5

2 x 100 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

Answer 2

Answer:

Step-by-step explanation:

Amount=1600×(1+52×100)2+1600×(1+52×100)

=1600×4140×4140+1600×4140

=1600×4140(4140+1)

=1600×41×8140×40

=Rs.3321

∴C.I.=Rs.(3321−3200)=Rs.121