Question discussion

A bank offers 20% compound interest per half year. A customer deposits Rs. 6000 each on 1st January and 1st July of a year. At the end of t…

226200Medium 1 reply 983 views

A bank offers 20% compound interest per half year. A customer deposits Rs. 6000 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. 7680
BRs. 3840
CRs. 1920
DRs. 960

Answer not set

Join the discussion Report an error

Discussion 1

CCommunity28 Jun 2019

For first half year

Principal = Rs. 6, 000

Rate of interest = 20%

As rate is calculated semi annually

Interest = (6000 × 20 × 1)/100 = Rs. 1200

For the second half year

Principal = 6000 + 1200 + 6000 = Rs. 13200

Interest = (13200 × 20 × 1)/100 = Rs. 2640

Total interest = 1200 + 2640 = Rs. 3840