1. 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
Explanation:
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
