A bank offers 5% compound interest calculated in half yearly basis. A customer deposits tk. 1600 each on 1st January and 1st July of a year. At the end of a year, the amount he would have gained by way of interest is-

A bank offers 5% compound interest calculated in half yearly basis. A customer deposits tk. 1600 each on 1^st January and 1^st July of a year. At the end of a year, the amount he would have gained by way of interest is-

A tk 120

B tk 123

C tk 122

D tk 121

Solution

Correct Answer: Option D

For the first half he gets, 1600(1+5/2*100)2

For the Secondf half he gets, 1600(1+5/2*100)

So total Amount= 1600(1+5/200)2 + 1600(1+5/200)

= 1600(1+5/200){(1+5/200) + 1}

=1600(205/200)(405/200)

=3321

Total Gained = (3321-3200) = 121

Solution

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