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A certain sum becomes 'k' times in 6 years at compound interest. In 24 years it will become how many times?
- A4k
- Bk4
- Ck3
- D3k
Answer not set
Discussion 1
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CCommunity
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
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