A bank offers 5 compound interest calculated on half yearly basis A customer deposits Rs 1600 each o......

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:

Amount	= Rs. 1600 x 1 + 5/ 2 + 1600 x 1 + 5/ 2 x 100 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