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A certain sum becomes 'k' times in 6 years at compound interest. In 24 years it will become how many times?
  • a)
    4k
  • b)
    k4
  • c)
    k3
  • d)
    3k
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A certain sum becomes 'k' times in 6 years at compound interes...
We know the formula for compound interest –
CI = [P{1 + r/100}t – 1]
Where,
CI = Compound interest
P = Principal
R = Rate of interest
T = Time period
According to the question,
⇒ kP – P = [P {1 + r/100}6 – 1]
⇒ kP = P {1 + r/100}6          ----- (1)
∴ Total sum becomes after 24 year
⇒ P {1 + r/100}24 = P [{1 + r/100}6]4
Using equation (1)
= Pk4
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Most Upvoted Answer
A certain sum becomes 'k' times in 6 years at compound interes...
To solve this question, we need to understand the concept of compound interest and its formula.

Compound Interest Formula:

The formula to calculate the compound interest is given by:

A = P(1 + r/n)^(n*t)

Where:
A = Final amount
P = Principal amount (initial sum)
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Number of years

In this question, it is given that the sum becomes k times in 6 years at compound interest. So, let's assume the initial sum (principal amount) as P. After 6 years, the final amount will be kP.

Calculating the Interest Rate:

Now, we need to find the interest rate (r) from this information. We can rearrange the compound interest formula to solve for r:

r = ([(A/P)^(1/(n*t))]) - 1

Substituting the values, we have:
r = [(kP/P)^(1/(n*t))] - 1
r = k^(1/(n*t)) - 1

Finding the Final Amount in 24 Years:

Now, we need to calculate how many times the initial sum will become in 24 years. Let's call this factor X.

Using the compound interest formula, we have:
X = (1 + r/n)^(n*t)

Substituting the values, we have:
X = (1 + k^(1/(n*t)) - 1/n)^(n*t)

Simplifying the expression, we have:
X = (k^(1/(n*t)))^n

Since n*t = 6 (as given in the question), we can substitute this value:
X = (k^(1/6))^n

Now, let's simplify further:
X = (k^(1/6))^n
X = k^(n/6)

Since n = 24 (as given in the question), we can substitute this value:
X = k^(24/6)
X = k^4

Therefore, after 24 years, the sum will become k^4 times the initial amount. Hence, the correct answer is option 'B' - k^4.
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A certain sum becomes 'k' times in 6 years at compound interest. In 24 years it will become how many times?a)4kb)k4c)k3d)3kCorrect answer is option 'B'. Can you explain this answer?
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