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A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will become
- a)Rs. 48,000
- b)Rs. 96,000
- c)Rs. 1,90,000
- d)Rs. 1,92,000
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
A sum of Rs. 12,000 deposited at compound interest becomes double afte...
For compound interest:
Where,
A = Amount
P = Principal
R = rate %
t = time in years
Given, A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years.
P = 12000
A = 2 × P = 24000
t = 5 years
R = ?
Substituting from eq 1 we have
⇒ A = 12000 × 24
⇒ A = 12000 × 16
⇒ A = Rs. 192000
Most Upvoted Answer
A sum of Rs. 12,000 deposited at compound interest becomes double afte...
Given:
- Principal amount (P) = Rs. 12,000
- Time period (t) = 5 years
The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount (double the principal amount in this case)
- r is the rate of interest
- n is the number of times the interest is compounded in a year
Step 1: Calculate the rate of interest (r)
To find the rate of interest, we can rearrange the compound interest formula as:
r = (A/P)^(1/nt) - 1
In this case, A = 2P, so substituting the values:
r = (2P/P)^(1/nt) - 1
r = 2^(1/nt) - 1
Step 2: Calculate the rate of interest compounded annually
Since the question does not specify the compounding frequency, we will assume it to be annually.
Thus, n = 1.
r = 2^(1/1*5) - 1
r = 2^(1/5) - 1
r = 1.1487 - 1
r = 0.1487
Step 3: Calculate the final amount after 20 years
To find the final amount after 20 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Substituting the given values:
P = Rs. 12,000
t = 20 years
n = 1 (compounded annually)
r = 0.1487
A = 12,000(1 + 0.1487/1)^(1*20)
A = 12,000(1.1487)^20
A ≈ Rs. 1,92,000
Therefore, after 20 years, the sum of Rs. 12,000 will become approximately Rs. 1,92,000. Hence, the correct answer is option D.
- Principal amount (P) = Rs. 12,000
- Time period (t) = 5 years
The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount (double the principal amount in this case)
- r is the rate of interest
- n is the number of times the interest is compounded in a year
Step 1: Calculate the rate of interest (r)
To find the rate of interest, we can rearrange the compound interest formula as:
r = (A/P)^(1/nt) - 1
In this case, A = 2P, so substituting the values:
r = (2P/P)^(1/nt) - 1
r = 2^(1/nt) - 1
Step 2: Calculate the rate of interest compounded annually
Since the question does not specify the compounding frequency, we will assume it to be annually.
Thus, n = 1.
r = 2^(1/1*5) - 1
r = 2^(1/5) - 1
r = 1.1487 - 1
r = 0.1487
Step 3: Calculate the final amount after 20 years
To find the final amount after 20 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Substituting the given values:
P = Rs. 12,000
t = 20 years
n = 1 (compounded annually)
r = 0.1487
A = 12,000(1 + 0.1487/1)^(1*20)
A = 12,000(1.1487)^20
A ≈ Rs. 1,92,000
Therefore, after 20 years, the sum of Rs. 12,000 will become approximately Rs. 1,92,000. Hence, the correct answer is option D.
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A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will becomea)Rs. 48,000b)Rs. 96,000c)Rs. 1,90,000d)Rs. 1,92,000Correct answer is option 'D'. Can you explain this answer?
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A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will becomea)Rs. 48,000b)Rs. 96,000c)Rs. 1,90,000d)Rs. 1,92,000Correct answer is option 'D'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will becomea)Rs. 48,000b)Rs. 96,000c)Rs. 1,90,000d)Rs. 1,92,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will becomea)Rs. 48,000b)Rs. 96,000c)Rs. 1,90,000d)Rs. 1,92,000Correct answer is option 'D'. Can you explain this answer?.
A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will becomea)Rs. 48,000b)Rs. 96,000c)Rs. 1,90,000d)Rs. 1,92,000Correct answer is option 'D'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will becomea)Rs. 48,000b)Rs. 96,000c)Rs. 1,90,000d)Rs. 1,92,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will becomea)Rs. 48,000b)Rs. 96,000c)Rs. 1,90,000d)Rs. 1,92,000Correct answer is option 'D'. Can you explain this answer?.
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