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A Bank Offers 5% Compound Interest Calculated on a Half-yearly Basis. a Customer Deposits ₹1600 Each on 1st January and 1st July of a Year. at the End of the Year, the Amount He Would Have Gained by - Mathematics

MCQ

A bank offers 5% compound interest calculated on a half-yearly basis. A customer deposits ₹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

Options

  • ₹120

  • ₹121

  • ₹122

  • ₹123

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Solution

₹121
Explanation :

Amount = ₹`[1600xx(1+5/(2xx100))^2+1600 xx(1+5/(2xx100))]`

= ₹`[1600xx41/40xx41/40+1600xx41/40]`

= ₹`[1600xx41/40(41/40+1)]`

= ₹`[(1600xx41xx81)/(40xx40)]=₹3321`

∴   CI = ₹(3321 - 3200) = ₹121

Concept: Simple and Compound Interest
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