1.

A certain sum becomes 'k' times in 6 years at compound interest. In 24 years it will become how many times?1). 4k2). k43). k34). 3k

Answer»

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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