Rs. 12000 deposited on compound interest becomes double in 5 years. If

1.	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 becomes1. Rs. 1290002. Rs. 2190003. Rs. 9210004. Rs. 192000
Answer» 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

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 becomes1. Rs. 1290002. Rs. 2190003. Rs. 9210004. Rs. 192000

Answer» 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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