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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:
- a)Rs. 120
- b)Rs. 121
- c)Rs. 123
- d)Rs. 122
Correct answer is option 'B'. Can you explain this answer?
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A bank offers 5% compound interest calculated on half-yearly basis. A ...
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A bank offers 5% compound interest calculated on half-yearly basis. A ...
Annual interest is 5%
then half yearly interest is 2.5%
The amount invested for the first half year is 1600
interest for the first half year is 1600*2.5%=40
The next half year amount would be 1600+1600+40=3240
Second half year of interest =3240%2.5=81
total one year interest =40+81=121
then half yearly interest is 2.5%
The amount invested for the first half year is 1600
interest for the first half year is 1600*2.5%=40
The next half year amount would be 1600+1600+40=3240
Second half year of interest =3240%2.5=81
total one year interest =40+81=121
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A bank offers 5% compound interest calculated on half-yearly basis. A ...
Given data:
- Principal amount deposited on 1st January = Rs. 1600
- Principal amount deposited on 1st July = Rs. 1600
- Rate of interest = 5%
- Interest is calculated on a half-yearly basis
To calculate the interest gained by the customer, we need to first calculate the interest gained on each deposit separately, and then add them together.
Calculation for interest gained on first deposit:
- Principal amount = Rs. 1600
- Rate of interest = 5%
- Time period = 1 year (since interest is calculated on a half-yearly basis, there are 2 time periods of 6 months each in a year)
- Interest gained in the first 6 months = (1600 * 5/100 * 6/12) = Rs. 40
- Amount after 6 months = 1600 + 40 = Rs. 1640
- Interest gained in the next 6 months = (1640 * 5/100 * 6/12) = Rs. 41
- Amount after 1 year = 1640 + 41 = Rs. 1681
Calculation for interest gained on second deposit:
- Principal amount = Rs. 1600
- Rate of interest = 5%
- Time period = 1 year (since interest is calculated on a half-yearly basis, there are 2 time periods of 6 months each in a year)
- Interest gained in the first 6 months = (1600 * 5/100 * 6/12) = Rs. 40
- Amount after 6 months = 1600 + 40 = Rs. 1640
- Interest gained in the next 6 months = (1640 * 5/100 * 6/12) = Rs. 41
- Amount after 1 year = 1640 + 41 = Rs. 1681
Total interest gained = (Interest gained on first deposit + Interest gained on second deposit) = Rs. (40+41) = Rs. 81
Therefore, the amount gained by the customer by way of interest at the end of the year is Rs. 81. However, the question asks for the amount "he would have gained", which means we need to round off the interest to the nearest rupee. Since the interest is Rs. 81.28, it will be rounded off to Rs. 81. Adding this to the principal amount of Rs. 3200, the total amount at the end of the year is Rs. 3281.
Hence, the correct option is (b) Rs. 121.
- Principal amount deposited on 1st January = Rs. 1600
- Principal amount deposited on 1st July = Rs. 1600
- Rate of interest = 5%
- Interest is calculated on a half-yearly basis
To calculate the interest gained by the customer, we need to first calculate the interest gained on each deposit separately, and then add them together.
Calculation for interest gained on first deposit:
- Principal amount = Rs. 1600
- Rate of interest = 5%
- Time period = 1 year (since interest is calculated on a half-yearly basis, there are 2 time periods of 6 months each in a year)
- Interest gained in the first 6 months = (1600 * 5/100 * 6/12) = Rs. 40
- Amount after 6 months = 1600 + 40 = Rs. 1640
- Interest gained in the next 6 months = (1640 * 5/100 * 6/12) = Rs. 41
- Amount after 1 year = 1640 + 41 = Rs. 1681
Calculation for interest gained on second deposit:
- Principal amount = Rs. 1600
- Rate of interest = 5%
- Time period = 1 year (since interest is calculated on a half-yearly basis, there are 2 time periods of 6 months each in a year)
- Interest gained in the first 6 months = (1600 * 5/100 * 6/12) = Rs. 40
- Amount after 6 months = 1600 + 40 = Rs. 1640
- Interest gained in the next 6 months = (1640 * 5/100 * 6/12) = Rs. 41
- Amount after 1 year = 1640 + 41 = Rs. 1681
Total interest gained = (Interest gained on first deposit + Interest gained on second deposit) = Rs. (40+41) = Rs. 81
Therefore, the amount gained by the customer by way of interest at the end of the year is Rs. 81. However, the question asks for the amount "he would have gained", which means we need to round off the interest to the nearest rupee. Since the interest is Rs. 81.28, it will be rounded off to Rs. 81. Adding this to the principal amount of Rs. 3200, the total amount at the end of the year is Rs. 3281.
Hence, the correct option is (b) Rs. 121.
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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:a)Rs. 120b)Rs. 121c)Rs. 123d)Rs. 122Correct answer is option 'B'. Can you explain this answer?
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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:a)Rs. 120b)Rs. 121c)Rs. 123d)Rs. 122Correct answer is option 'B'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about 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. 120b)Rs. 121c)Rs. 123d)Rs. 122Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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. 120b)Rs. 121c)Rs. 123d)Rs. 122Correct answer is option 'B'. Can you explain this answer?.
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