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 = ?
A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123
Answer: Option B
Solution(By Examveda Team)
$$\eqalign{ & {\text{ = Rs}}.\left[ {1600 \times {{\left( {1 + \frac{5}{{2 \times 100}}} \right)}^2} + 1600 \times \left( {1 + \frac{5}{{2 \times 100}}} \right)} \right] \cr & {\text{ = Rs}}.\left[ {1600 \times \frac{{41}}{{40}} \times \frac{{41}}{{40}} + 1600 \times \frac{{41}}{{40}}} \right] \cr & {\text{ = Rs}}.\left[ {1600 \times \frac{{41}}{{40}}\left( {\frac{{41}}{{40}} + 1} \right)} \right] \cr & {\text{ = Rs}}.\left( {\frac{{1600 \times 41 \times 81}}{{40 \times 40}}} \right) \cr & {\text{ = Rs}}.\,3321 \cr & \therefore {\text{C}}{\text{.I}}{\text{. = Rs}}.\left( {3321 - 3200} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}.\,121 \cr} $$Related Questions on Compound Interest
A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123
E. None of these
A. 625
B. 630
C. 640
D. 650
E. None of these
A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
E. None of these
A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30
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