A sum of Rs. 2400 deposited at CI, doubled after 5 years.
Posted on 28-04-2023
Ques - A sum of Rs. 2400 deposited at CI, doubled after 5 years. After 20 years it will become :
(a) Rs. 24000
(b) Rs. 38400
(c) Rs. 19200
(d) Can't determine
Solution -
Given,
A = 4800
P = 2400
T = 5
A = P (1 + (r/100))n
4800 = 2400 (1 + (r/100))5
4800/2400 = (1 + (r/100))5
2 = 1 + (r/100)5
After 20 years,
(2)4 = [1 + (r/100)5]4
16 = 1 + (r/100)20
Thus,
The amount becomes 16 times.
So,
= P × 16
= 2400 × 1600
= 38400
Hence,
The correct answer is option (b) Rs. 38400.
Thank You