A bank offers 5% compound interest calculated on a half-yearly basis. A customer deposits Rs. 1600 each on 1^st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

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Solution

Amount = Rs. $[$ 1600 × $($ $1 + \frac{5}{2 \times 100})^{2}$ + $($ $1 + \frac{5}{2 \times 100})$ $]$

= Rs. $[$ 1600 × $\frac{41}{40}$ × $\frac{41}{40}$ +1600 × $\frac{41}{40}$ $]$

= Rs. $[$ 1600 × $\frac{41}{40}$ $($ $\frac{41}{40}$ +1 $)$ $]$

= Rs. $[$ $\frac{1600 \times 41 \times 81}{40 \times 40}$ $]$

= Rs. 3321

∴ C.I. = Rs. (3321 - 3200) = Rs.121

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A bank offers 5% compound interest calculated on a 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:

Amount = Rs. [ 1600 × ( 1+52×100)2 + ( 1+52×100) ] = Rs. [ 1600 × 4140× 4140+1600 × 4140 ] = Rs. [ 1600 × 4140 ( 4140+1) ] = Rs. [ 1600×41×8140×40] = Rs. 3321 ∴ C.I. = Rs. (3321 - 3200) = Rs.121

A bank offers 5% compound interest calculated on a half-yearly basis. A customer deposits Rs. 1600 each on 1^st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is: