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:

\(Amount=Rs(1600*(1+frac{5}{2*100})^{2}+1600*(1+frac{5}{2*100}))\) \(Amount=Rs(1600*frac{41}{40}*frac{41}{40}+1600*frac{41}{60})\) \(Amount=Rs(1600*frac{41}{40}*(frac{41}{40}+1))\) \(Amount=Rs(frac{1600*41*81}{40*40})\) =Rs 3321 Compound Interest = Rs(3321-3200) = Rs 121

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