Question

A bank offers Compound Interest at 5% calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1^st January and 1^st July of a year. At the end of the year, the amount he would have gained is (in Rs.):

• A. 120
• B. 122
• C. 3321
• D. 221

Answer 1

The correct option is B

122

$Amount=1600\times (1+\frac{5}{2\times 100}{)}^2+1600\times (1+\frac{5}{2\times 100})$

$=Rs.3321$

$C.I=122$