Multiple choice

If Rs. 1000 be invested at interest rate of 5% and the interest be added to the principal every 12 years then the number of years in which it will amount to Rs. 2000 is ? 5% प्रति वर्ष की दर से 1000 रू. की राशि निवेश की जाती है और ब्याज प्रति 12 वर्ष के बाद मूलधन में जोड़ा जाता है। कितने वर्षों में यह राशि 2000 रू. हो जायेगी?

  1. 5 years/वर्ष

  2. 10 years/वर्ष

  3. 15 years/वर्ष

  4. 17 years/वर्ष
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

After 12 years: 1000 + (1000 × 0.05 × 12) = 1000 + 600 = 1600. Now amount = 1600. Next 5 years interest: 1600 × 0.05 × 5 = 400. But it only compounds at 12 years, so we need 17 years for amount to reach 2000.

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