Question Bank › General Aptitude › Compound Interest › ABC26GN4148ABC26GN4148 · Compound Interest Subject: General Aptitude · Chapter: Compound Interest · Exam: · Marks: · Difficulty:
A bank offers 5\% compound interest calculated on half-yearly basis. A customer deposits ₹ 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) ₹ 120
(b) ₹ 121
(c) ₹ 122
(d) ₹ 123
Answer Explanation $$\begin{aligned} & \text { unt }=₹\left[1600 \times\left(1+\frac{5}{2 \times 100}\right)^{2}+1600 \times\left(1+\frac{5}{2 \times 100}\right)\right] \\ & =₹\left[1600 \times \frac{41}{40} \times \frac{41}{40}+1600 \times \frac{41}{40}\right] \\ & =₹\left[1600 \times \frac{41}{40}\left(\frac{41}{40}+1\right)\right]=₹\left(\frac{1600 \times 41 \times 81}{40 \times 40}\right) \\ & =₹ 3321 . \end{aligned}$$ ∴ C.I. $=₹(3321-3200)=₹ 121$.
Explanation as extracted from the printed page; notation may be imperfect.
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