Question discussion

A bank offers 15% simple interest per annum. A customer deposits Rs. 7200 each on 1st January and 1st July of a year. At the end of the yea…

238917Medium 1 reply 529 views

A bank offers 15% simple interest per annum. A customer deposits Rs. 7200 each on 1^st January and 1^st July of a year. At the end of the year, the amount he would have gained by means of interest is

ARs. 6803
BRs.1660.5
CRs. 1701
DRs. 850

Answer not set

Join the discussion Report an error

Discussion 1

CCommunity11 Jul 2019

For first half year

Principal = Rs. 7,200

Rate of interest = 15%

As rate is calculated semi annually

Interest = (7200 × 15 × 1)/200 = Rs. 540

For the second half year

Principal = 7200 + 7200 = Rs. 14400

Interest = (14440 × 15 × 1)/200 = Rs. 1080

Total interest = 540 + 1080 = Rs. 1620