Compound Interest

Quantitative Aptitude ( CCS)

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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:

120

121

122

123

Explanation:

Amount

= Rs.

1600 x

1 +

+ 1600 x

1 +

2 x 100

= Rs.		1600 x	41/	x	41/	+ 1600 x	41/
			40		40		40

= Rs.		1600 x	41/		41/	+ 1
			40		40

= Rs.		1600 x 41 x 81/
		40 x 40

= Rs. 3321.

C.I. = Rs. (3321 - 3200) = Rs. 121

Hence, option 2 is the correct answer.

By: Amit Kumar

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