Question 68

A bank offers 10% compound interest per half year. A customer deposits Rs. 3600 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.

Solution

Principal = Rs. 3,600 and Rate = 10%

Total interest gained = Interst on second time invested amount + Interst on initially invested amount

Total interest gained = 3600 of 10% + 3600 of 21%

= 360 + 756

= 1116

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