Multiple choice

On a certain rate of interest a sum of Rs 5000 becomes Rs 16,200 in certain years at compound interest. In half of the time given, this sum will become?

  1. Rs. 10000

  2. Rs. 5600

  3. Rs. 9000

  4. Can not be determine

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If amount grows from 5000 to 16200 in n years, the growth factor is 16200/5000 = 3.24. In half the time (n/2 years), the amount will be 5000 × sqrt(3.24) = 5000 × 1.8 = 9000. This uses the compound interest property that amount doubles by the square root of the growth factor when time is halved.

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