A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 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:
Answer / Anand Sharma
The given deposit amounts are quarterly (every three months), but the compounding happens half-yearly (every six months). To find the effective annual interest rate, we'll use the formula for compound interest with continuous compounding:
A = P * e^(rt)
where:
A is the final amount
P is the principal (initial deposit)
r is the annual interest rate (5% or 0.05 in decimal form)
t is the time in years (1 year in this case)
First, let's calculate the half-yearly interest:
1st Quarter: A1 = P * (1 + r/2)^(r/2)
2nd Quarter: A2 = P * (A1 * (1 + r/2))^(r/2)
The final amount is: A = A1 + A2 + P
Calculating the half-yearly interest:
A1 = 1600 * (1 + 0.05/2)^(0.05/2)
A2 = A1 * (A1 * (1 + 0.05/2))^(0.05/2)
Total amount: A = A1 + A2 + 1600
The customer would have gained approximately Rs. 389 in interest.
| Is This Answer Correct ? | 0 Yes | 0 No |
what is FORMAT keyword
pls suggest me a good institute for SAP-MM in Pune
You're tasked with implementing a computer player for a real-time strategy (RTS) game. Assuming that there is no fog-of-war, how do you implement a system to allow the computer player to determine what parts of the map are controlled by enemy players, and which parts are open to easy exploitation? How do you identify the choke points on the map? How do you find the boundary between the parts of the map under your control and the parts of the map controlled by enemy players? How do you detect an impending enemy attack or a change in an enemy's offensive posture?
Imagine you have to write a Tic-Tac-Toe game in which a human player plays against the computer. Discuss the different ways in which you could implement the computer’s artificial intelligence for the game. Which method would you ultimately choose? And why?
How to iterate map in collection framework?
What is the difference between Requirement type Determination and Schedule line category determination ?
What is the difference between raster and vector graphics?
paypal interview questions
can anyone tell me the program to compare two files and write matching records to a file and unmatched to another in mainframe.
What is the movement Type for Sales?
What's the difference between a finite state machine (FSM) and a hierarchical finite state machine (HFSM)? Give an example of a hierarchical state machine with functionality that you could not easily replicate in a non-hierarchical FSM.
Two trains running in opposite directions cross a man standing on the platform in 27 seconds and 17 seconds respectively and they cross each other in 23 seconds. The ratio of their speeds is:
Software (196885)
Sciences (12521)
Engineering (38019)
Business Management (7371)
Accounting (11552)
Advertising Media (662)
Architecture Design (207)
Call Centre (2483)
Fashion Modelling (332)
Government (17384)
Law (806)
Tourism Hotel (377)
Everything Else (2323)
Military Police (160)
Skills Abilities (0)
Aptitude Questions (4307)
Placement Papers (705)
Certifications (3752)
Visa Interview Questions (2230)
Code Snippets (1098)
Entrance Exams (862)
ERRORS (16636)