Question

A sum of rs.10,000 amount to rs.12,000 in 5 years at a certain rate percent at compound interest. Find what will be the amount in 20 years at the same rate of compound interest?

Answer 1

Answer:

18000 amount for 20 years

Answer 2

The amount at the end of 'n' years of investing in compound interest.

$A = P(1 + \frac{r}{100} {)}^{n}$

$here,$

$P = 12000$

$n = 3$

$r = 5\%$

$A = 12000(1 + \frac{5}{100} {)}^{3}$

$= rs.13891.5$

now, compound interest

$CI = amount - principle \\ = 13891.5 - 12000 \\ \boxed{= rs.1891.5}$