At what rate of percent compound interest does a sum of money become four times itself in 2 years?

1. At what rate percent per annum of compound interest, will a sum of money become four times of itself in two years ?

1. 1. 100%
   2. 75%
   3. 50%
   4. 20%

Correct Option: A

Let the Principal be P and rate of interest be R%.
According to question ,

4P = P		1 +	R		2
100

⇒  4 =		1 +	R		2
100

Taking square root both sides , we get

⇒  R = 100%
We can find required answer with the help of given formula :
Here, n = 4, t = 2 years
R% = (n1/t − 1) × 100%
R% = [(4)1/2 − 1] × 100%
R% = [2 - 1] × 100%
∴ R% = 100%

Find the rate at which a sum of money will become four times the original amount in 2 years, if the interest is compounded half-yearly.

Solution

Let the rate percent per annum be R.
Then, 
\[A = P \left( 1 + R \right)^{2n} \]
\[4P = P \left( 1 + \frac{R}{200} \right)^4 \]
\[ \left( 1 + \frac{R}{200} \right)^4 = 4\]
\[\left( 1 + \frac{R}{200} \right) = 1 . 4142\]
\[\frac{R}{200} = 0 . 4142\]
R = 82 . 84
Thus, the required rate is 82 . 84 %.

Concept: Rate Compounded Annually Or Half Yearly (Semi Annually)

  Is there an error in this question or solution?

APPEARS IN

• Aptitude
• Simple and compound interest

Correct Answer:

Description for Correct answer:
\( \Large Principal\ \ Amount \)

\( \Large 1 \rightarrow\ \ 4 \)

\( \Large 4=1 \left(1+\frac{r}{100}\right)^{2}\)

\( \Large 4= \left(1+\frac{r}{100}\right)^{2}\)

r = 100 %

Part of solved Simple and compound interest questions and answers : >> Aptitude >> Simple and compound interest

Free

SBI Clerk Prelims Full Test 1

100 Questions 100 Marks 60 Mins

Last updated on Sep 28, 2022

SBI Clerk 2022 Notification Out for 5486 Vacancies. A total of 5008 regular vacancies and 478 backlog vacancies are announced by SBI. The application window for SBI Clerk (Junior Associates) is open from 7th September to 27th September 2022 with an application fee of Rs 750 for General/EWS/OBC candidates. Graduates between the age of 20 to 28 years of age are eligible to apply. The candidates whose applications will be accepted will have to undergo the SBI Clerk selection process consisting of the Preliminary, Main Exam and language test, if applicable .

Let's discuss the concepts related to Interest and Compound Interest. Explore more from Quantitative Aptitude here. Learn now!

Getting Image
Please Wait...

Course

NCERT

Class 12Class 11Class 10Class 9Class 8Class 7Class 6

IIT JEE

Exam

JEE MAINSJEE ADVANCEDX BOARDSXII BOARDS

NEET

Neet Previous Year (Year Wise)Physics Previous YearChemistry Previous YearBiology Previous YearNeet All Sample PapersSample Papers BiologySample Papers PhysicsSample Papers Chemistry

Download PDF's

Class 12Class 11Class 10Class 9Class 8Class 7Class 6

Exam CornerOnline ClassQuizAsk Doubt on WhatsappSearch DoubtnutEnglish DictionaryToppers TalkBlogJEE Crash CourseAbout UsCareerDownloadGet AppTechnothlon-2019

Logout

Login

Register now for special offers

+91

Home

>

English

>

Class 14

>

Maths

>

Chapter

>

Compound Interest

>

At what rate per cent compound...

Updated On: 27-06-2022

UPLOAD PHOTO AND GET THE ANSWER NOW!

Text Solution

Answer : 1

Answer

Step by step solution by experts to help you in doubt clearance & scoring excellent marks in exams.

Related Videos

643656089

0

5.4 K

2:12

At what rate per cent compound interest, does a sum of money become 1.44 times of itself in 2 years ?

643431356

0

9.3 K

1:43

At what rate per cent compound interest does a sum of money become 16 times in 4 years?

438325646

600

5.3 K

1:38

In what time, does a sum of money become four fold at the simple interest rate of 10% per annum?

646836482

0

5.4 K

4:47

एक धन, चक्रवृद्धि ब्याज की दर से 2 वर्ष में ₹ 9680 तथा 3 वर्ष में ₹ 10648 हो जाता है। यदि ब्याज दर प्रति वार्षिक हो, तो वह धन तथा ब्याज दर क्रमश: होगी

648666792

0

3.7 K

1:25

A sum of money becomes (8/5) of itself in 5 years at a certain rate of interest. The rate per cent per annum is….

648114012

0

1.5 K

एक धन, चक्रवृद्धि ब्याज की दर से 2 वर्ष में ₹ 9680 तथा 3 वर्ष में Rs. 10648 हो जाता है। यदि ब्याज दर प्रति वार्षिक हो, तो वह धन तथा च्याज दर क्रमशः होगी

Show More

Comments

Add a public comment...

Follow Us:

Popular Chapters by Class:

Class 6

AlgebraBasic Geometrical IdeasData HandlingDecimalsFractions

Class 7

Algebraic ExpressionsComparing QuantitiesCongruence of TrianglesData HandlingExponents and Powers

Class 8

Algebraic Expressions and IdentitiesComparing QuantitiesCubes and Cube RootsData HandlingDirect and Inverse Proportions

Class 9

Areas of Parallelograms and TrianglesCirclesCoordinate GeometryHerons FormulaIntroduction to Euclids Geometry

Class 10

Areas Related to CirclesArithmetic ProgressionsCirclesCoordinate GeometryIntroduction to Trigonometry

Class 11

Binomial TheoremComplex Numbers and Quadratic EquationsConic SectionsIntroduction to Three Dimensional GeometryLimits and Derivatives

Class 12

Application of DerivativesApplication of IntegralsContinuity and DifferentiabilityDeterminantsDifferential Equations

Privacy PolicyTerms And Conditions

Disclosure PolicyContact Us