What will be Amount After 20 Years? If

A sum of Rs.12,000 deposited at compound interest becomes double after 5 years. After 20 years it will become:

  1. Rs. 120000
  2. Rs. 192000
  3. Rs. 124000
  4. Rs. 96000
Desire Adnan Default Asked on 3rd August 2015 in Maths.
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1 Answer(s)

Answer: (2) Rs.192000
Explanation:-
Given-
Principal = Rs.12,000, Time = 5 years and Rate = R %
Amount is  the double of principal,
Then, the amount = 12,000 + 12,000
= Rs.24,000
Formula-
Compound Interest = P [(1 + R/100)t – 1]
Where, P = principal, R = rate, t = time.
Then,24000 = 12000(1 + R/100)5
2 = (1 + R/100)5
24 = [(1 + R/100)5]4
16 = (1 + R/100)20
16 P = P (1 + R/100)20
16 x 12000 = 12000 (1 + R/100)20
192000 = 12000 (1 + R/100)20
Hence, the answer is (2) Rs.192000.

Anurag Mishra Professor Answered on 3rd August 2015.
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