A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 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
1). Rs. 1240
2). Rs. 310
3). Rs. 155
4). Rs. 620
A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 each on 1st January and 1st July of a year.
Compound interest for first 6 months = Rs. 2000 × [1 + (10/100)] = Rs. 2200
So, interest = Rs. 2200 - 2000 = Rs. 200
Principal amount for next 6 months = Rs. 2000 + 2200 = Rs. 4200
So, the compound interest for last 6 months = Rs. 4200 × [1 + (10/100)] = Rs. 4620
So, interest = Rs. 4620 - 4200 = Rs. 420
∴ The total interest gained = Rs. 200 + 420 = Rs. 620