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A bank offers 15% simple interest per annum. A customer deposits Rs. 7200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by means of interest is

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A bank offers 15% simple interest per annum. A customer deposits Rs. 7200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by means of interest is
1). Rs. 6803
2). Rs.1660.5
3). Rs. 1701
4). Rs. 850


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2 vote
Answered by on | Votes 2 |

For first half year

Principal = Rs. 7,200

Rate of interest = 15%

As rate is calculated semi annually

Interest = (7200 × 15 × 1)/200 = Rs. 540

For the second half year

Principal = 7200 + 7200 = Rs. 14400

Interest = (14440 × 15 × 1)/200 = Rs. 1080

Total interest = 540 + 1080 = Rs. 1620

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