Question

sbi offers 10% interest compounded half yearly customer deposits rs1200 each on 1st January and 1st july of the year at the end of year what amount would he have gained it​

Answer 1

Answer: 183

Steps:

Annual rate of interest = 10%

Half yearly rate of interest = 10/2 = 5%

Principal on 1st Jan = Rs 1200

Interest till June (6 months) = 5% of 1200 = Rs 60

Principal on 1st July = 1200 + 60 + 1200 = Rs 2460 (Since another Rs 1200 is added)

Interest for next six months = 5% of 2460 = Rs 123

Total interest in the year = 60 + 123 = Rs 183