1.

A bank offers 10% interest annually, compounded half yearly. A customer deposits Rs. 3600 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.1). Rs 5492). Rs 22323). Rs 5584). Rs 279

Answer»

We know that,

AMOUNT received after compound interest = P(1 + r/100)n

Where, P is the principal amount

r is the rate of interest

n is the number of intervals

Amount received at the END of year is GIVEN by,

A = 3600(1 + 10/200) + 3600 (1 + 10/200)1

A = 3600 (1 + 0.05)2 + 3600 (1 + 0.05)1

A = 3969 + 3780 = 7749

Principal Amount = 3600 + 3600 = Rs. 7200

∴ Interest gained = 7749 - 7200 = Rs. 549



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