In how much time an investment of Rs. 50,000 at the rate of 5% simple interest would be doubled, if the…
In the first 10 years the simple interest is \(50000\times0.05\times10=25000\), and adding it makes the principal ₹75,000. A further ₹25,000 is needed to reach ₹1,00,000; on…
Choose your answer
In how much time an investment of Rs. 50,000 at the rate of 5% simple interest would be doubled, if the interest is added to the principal amount after every 10 years
Answer and explanation
Correct answer A
In the first 10 years the simple interest is , and adding it makes the principal ₹75,000. A further ₹25,000 is needed to reach ₹1,00,000; on ₹75,000 at 5% the yearly interest is 3750, so this takes years. The total time is years, whereas without adding the interest after 10 years doubling would take 20 years.
Practice for these exams
-
UGC NET Law
Subject revision
See pack details on LawMint.net -
UGC NET Paper I