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A sum of Rs.5000 at CI becomes double in 5 years. In 20 years it will beMarks : 2Negative Marks : 0Answer hereRs.100000Rs.80000Rs.50000Rs.20000ClearPrevNext

Question

A sum of Rs.5000 at CI becomes double in 5 years. In 20 years it will be

Marks : 2
Negative Marks : 0
Answer here
Rs.100000
Rs.80000
Rs.50000
Rs.20000

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Solution

The given problem states that a sum of Rs.5000 becomes double in 5 years with compound interest. This means that in 5 years, the amount becomes Rs.10000.

Compound interest is calculated by continuously multiplying the initial principal amount by one plus the annual interest rate (divided by the number of compounding periods) to the power of the total number of compounding periods.

In this case, the amount doubles every 5 years. So, in 20 years, the amount will double 4 times (since 20 divided by 5 equals 4).

So, if we start with Rs.5000:

  • After 5 years, it becomes Rs.10000 (which is 5000 * 2).
  • After another 5 years (10 years total), it becomes Rs.20000 (which is 10000 * 2).
  • After another 5 years (15 years total), it becomes Rs.40000 (which is 20000 * 2).
  • After another 5 years (20 years total), it becomes Rs.80000 (which is 40000 * 2).

So, the answer is Rs.80000.

This problem has been solved

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