A bank provides a 5% compound interest rate computed every half-year. On the first of January and the first of July of each year, a client deposits Rs. 1600. The amount he would have gained in interest at the end of the year is:
A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123
Answer:B
A bank provides a 5% compound interest rate computed every half-year. On the first of January and the first of July of each year, a client deposits Rs. 1600. The amount he would have gained in interest at the end of the year is:
A. Rs. 120 B. Rs. 121 C. Rs. 122 D. Rs. 123
Explanation: Amount = (1600 x 1 + 5/2 x 100) rupees,2 + 1600 x 1 + 5/2 x100 = Rs.1600 x 41/40 x 41/40 = Rs. 1600 x 41/40 (41 + 1 /40 ).C.I. = Rs. (3321 - 3200) = Rs. 121. = Rs. 1600 x 41 x 81/ 40 x 40 = Rs. 3321.