a person lends rupees Rs 1000 on compound interest @ 100% per annum. in order to get rupees Rs 16000 on maturity, the number of years he should lend this amount is
Answers
Answer:
4 years
Step-by-step explanation:
Given Principle Amount = Rs 1000
Rate = 100%
Time = ?
Amount he needs to get = Rs 16000
1st year:
Principle Amount (P) = Rs 1000
Rate (R)= 100%
Time (T)= 1 year
Compound Interest (C.I) = PTR/100
= (1000 * 1 * 100)/100
= Rs 1000
Balance Amount at the end of 1st year = 1000 + 1000
= Rs 2000
2nd year:
Principle Amount (P) = Rs 2000
Rate (R)= 100%
Time (T)= 1 year
Compound Interest (C.I) = PTR/100
= (2000 * 1 * 100)/100
= Rs 2000
Balance Amount at the end of 2nd year = 2000 + 2000
= Rs 4000
3rd year:
Principle Amount (P) = Rs 4000
Rate (R)= 100%
Time (T)= 1 year
Compound Interest (C.I) = PTR/100
= (4000 * 1 * 100)/100
= Rs 4000
Balance Amount at the end of 3rd year = 4000 + 4000
= Rs 8000
4th year:
Principle Amount (P) = Rs 8000
Rate (R)= 100%
Time (T)= 1 year
Compound Interest (C.I) = PTR/100
= (8000 * 1 * 100)/100
= Rs 8000
Balance Amount at the end of 4th year = 8000 + 8000
= Rs 16000
So, the person needs to wait for 4 years in order to get Rs 16000.