Question

A bank offers 15% compound interest per half year. A customer deposits Rs.7200 each on 1st Jan and 1st July of a year. At the end of the year, the amount he would have gained by means of interst is ?
1. 3402
2. 3123
3. 3523
4. 3465

Answer 1

Correct Answer - Option 1 : 3402

Given

A bank offers 15% Compound interest per half year. A customer deposits Rs.7200 each on 1st Jan and 1st July of a year.

Concept used

Effective rate = \(x + y + \frac{{xy}}{{100}}\)

Calculation

One year = 1 Jan to 30 june + 1 July to 31 dec

Effective rate = \(x + y + \frac{{xy}}{{100}}\)

⇒ \(15 + 15 + \frac{{225}}{{100}}\)

⇒ 30 + 2.25

⇒ 32.25% of 7200 + 15% of 7200

⇒ 47.25% of 7200

⇒ 47.25 × 72

∴ Ans = Rs.3402