A bank offers 15% compound interest per half year. A customer deposits Rs 8800 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 8315
- BRs 2079
- CRs 4158
- DRs 1039
Solution & Step-by-step Explanation
Interest rate per half-year = 15%
The first deposit of Rs 8800 made on 1st January earns interest for 2 half-years (full year).
Amount
1
=8800×(1+
100
15
)
2
=8800×(1.15)
2
=8800×1.3225=Rs 11638
The second deposit of Rs 8800 made on 1st July earns interest for 1 half-year.
Amount
2
=8800×(1+
100
15
)
1
=8800×1.15=Rs 10120
Total amount at the end of the year:
Total Amount=11638+10120=Rs 21758
Total principal deposited:
Total Principal=8800+8800=Rs 17600
Interest gained:
Interest=Total Amount−Total Principal=21758−17600=Rs 4158
The first deposit of Rs 8800 made on 1st January earns interest for 2 half-years (full year).
Amount
1
=8800×(1+
100
15
)
2
=8800×(1.15)
2
=8800×1.3225=Rs 11638
The second deposit of Rs 8800 made on 1st July earns interest for 1 half-year.
Amount
2
=8800×(1+
100
15
)
1
=8800×1.15=Rs 10120
Total amount at the end of the year:
Total Amount=11638+10120=Rs 21758
Total principal deposited:
Total Principal=8800+8800=Rs 17600
Interest gained:
Interest=Total Amount−Total Principal=21758−17600=Rs 4158