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.
Add Comment
  • 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.
    Add Comment
  • Your Answer

    By posting your answer, you agree to the privacy policy and terms of service.