CA Foundation Exam > CA Foundation Questions > If 1000be invested at interest rate 5% and th...
Start Learning for Free
If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000?
Most Upvoted Answer
If 1000be invested at interest rate 5% and the interest be added to th...
Community Answer
If 1000be invested at interest rate 5% and the interest be added to th...
Understanding the Problem:
To solve this problem, we need to calculate the number of years it will take for an initial investment of $1000 at an interest rate of 5%, where the interest is added to the principal every 10 years, to grow to $2000.
Calculating the Growth:
- After the first 10 years, the investment will grow to $1000 + 5% of $1000 = $1050.
- After the second 10 years, the investment will grow to $1050 + 5% of $1050 = $1102.50.
- This pattern continues, with the investment growing by 5% every 10 years.
Finding the Number of Years:
To find out how many years it will take for the investment to reach $2000, we can set up an equation:
$1000 * (1 + 0.05)^n = $2000
Solving this equation will give us the number of years (n) it takes for the investment to double.
Solving the Equation:
$1000 * (1.05)^n = $2000
(1.05)^n = 2
Taking the log of both sides:
n * log(1.05) = log(2)
n = log(2) / log(1.05)
n ≈ 14.21
Conclusion:
It will take approximately 14.21 years for the initial investment of $1000 at an interest rate of 5%, with interest added to the principal every 10 years, to grow to $2000.
To solve this problem, we need to calculate the number of years it will take for an initial investment of $1000 at an interest rate of 5%, where the interest is added to the principal every 10 years, to grow to $2000.
Calculating the Growth:
- After the first 10 years, the investment will grow to $1000 + 5% of $1000 = $1050.
- After the second 10 years, the investment will grow to $1050 + 5% of $1050 = $1102.50.
- This pattern continues, with the investment growing by 5% every 10 years.
Finding the Number of Years:
To find out how many years it will take for the investment to reach $2000, we can set up an equation:
$1000 * (1 + 0.05)^n = $2000
Solving this equation will give us the number of years (n) it takes for the investment to double.
Solving the Equation:
$1000 * (1.05)^n = $2000
(1.05)^n = 2
Taking the log of both sides:
n * log(1.05) = log(2)
n = log(2) / log(1.05)
n ≈ 14.21
Conclusion:
It will take approximately 14.21 years for the initial investment of $1000 at an interest rate of 5%, with interest added to the principal every 10 years, to grow to $2000.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000?
Question Description
If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000?.
If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000?.
Solutions for If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? defined & explained in the simplest way possible. Besides giving the explanation of
If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000?, a detailed solution for If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? has been provided alongside types of If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? theory, EduRev gives you an
ample number of questions to practice If 1000be invested at interest rate 5% and the interest be added to the principal every 10 years, then the number of years in which it will amount to 2000? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup