A bank offers 5% compound interest calculated on half-yearly basis. A…

Question

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:

Accepted Answer

Option B. Rs. 121. Answer & Solution Answer: Option B Solution: & Amount & = 1600 × ( 1 + 52 × 100 )^2 + 1600 × ( 1 + 52 × 100 ) & = 1600 × 4140 × 4140 + 1600 × 4140 & = 1600 × 4140 ( 4140 + 1 ) & = 1600 × 41 × 8140 × 40 & = Rs.\,3321 & C.I. = Rs.\, ( 3321 - 3200 ) & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,…