A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 each on 1st January and 1st July of a year. At the end of t… — Answer & Discussion

A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 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

ARs. 1240
BRs. 310
CRs. 155
DRs. 620

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Discussion 1

CCommunity10 May 2019

A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 each on 1st January and 1st July of a year.

Compound interest for first 6 months = Rs. 2000 × [1 + (10/100)] = Rs. 2200

So, interest = Rs. 2200 - 2000 = Rs. 200

Principal amount for next 6 months = Rs. 2000 + 2200 = Rs. 4200

So, the compound interest for last 6 months = Rs. 4200 × [1 + (10/100)] = Rs. 4620

So, interest = Rs. 4620 - 4200 = Rs. 420

∴ The total interest gained = Rs. 200 + 420 = Rs. 620