# A bank offers 5% compound interest 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 by way of interest is:

A. Rs. 120

B. Rs. 121

C. Rs. 122

D. Rs. 123

E. None of these

**Answer: Option B **

__Solution(By Examveda Team)__

$$\eqalign{
& {\text{Amount}} \cr
& = {1600 \times {{\left( {1 + \frac{5}{{2 \times 100}}} \right)}^2} + 1600 \times \left( {1 + \frac{5}{{2 \times 100}}} \right)} \cr
& = {1600 \times \frac{{41}}{{40}} \times \frac{{41}}{{40}} + 1600 \times \frac{{41}}{{40}}} \cr
& = {1600 \times \frac{{41}}{{40}}\left( {\frac{{41}}{{40}} + 1} \right)} \cr
& = {\frac{{1600 \times 41 \times 81}}{{40 \times 40}}} \cr
& = Rs.\,3321 \cr
& \therefore C.I. = Rs.\,\left( {3321 - 3200} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,121 \cr} $$ ## Join The Discussion

## Comments ( 1 )

Related Questions on Compound Interest

**Rs.2000 amounts to Rs. 2226.05 in 2 years at compound interest. What will be the rate of interest ?**

A. 5%

B. 5.25%

C. 5.5%

D. 6%

A. Rs. 8000

B. Rs. 8400

C. Rs. 4400

D. Rs. 4800

**An amount of Rs 6000 lent at 5% per annum compounded interest for 2 years will become = ?**

A. Rs. 600

B. Rs. 6600

C. Rs. 6610

D. Rs. 6615

A. Rs. 22000

B. Rs. 30000

C. Rs. 28000

D. Rs. 32000

How time is calculated in a half yearly question