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

- A)Rs. 120
- B)Rs. 121
- C)Rs. 122
- D)Rs. 123

**Answer: **
B