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Mitesh Raj Parmar
Asked: 2022-11-10T13:56:20+05:30 In:

Rs. 12000 deposited on compound interest becomes double in 5 years. If it is deposited for 20 years on same compound interest, then this amount becomes
1. Rs. 129000
2. Rs. 219000
3. Rs. 921000
4. Rs. 192000

Rs. 12000 deposited on compound interest becomes double in 5 years. If it is deposited for 20 years on same compound interest, then this amount becomes
1. Rs. 129000
2. Rs. 219000
3. Rs. 921000
4. Rs. 192000
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1 Answer

  1. Correct Answer – Option 4 : Rs. 192000

    Given:

    Rs. 12000 becomes double of itself in 5 years when it is compounded.

    Formula used:

    Amount(A) = P[1 + (R/100)]T

    P = Principal

    R = Rate of interest

    T = Time

    Calculation:

    P = Rs. 12000

    According to the question:

    2P = P[1 + (R/100)]5

    ⇒ 2 = [1 + (R/100)]5

    If it is deposited for 20 years, then amount will be given by:

    A = P[1 + (R/100)]20

    ⇒ A = 12000[1 + (R/100)]5 × 4

    ⇒ A = 12000(2)4

    ⇒ A = 12000 × 16 = 192000

    ∴ The amount will become Rs. 192000 in 20 years

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