# 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 **

Thanks it is good

Thanks for the solution.

Why we multiple 2 in denominator formula is

Ci = p(1+r/100)^n+ p

in 1st line

how 2 x 100 come ??

January to june,

I=pnr

= 1600*1/2*5/100

= 40

Again, june to December

I=pnr

= 1640*1/2*5/100

=41

2nd case,

June to December

I=pnr

= 1600*1/2*5/100

= 40

So, total interest=40+41+40= 121

Plz any short tricks

How time is calculated in a half yearly question