Question

After how many years would the amount payable on loan be twice the principal is lent at 20% compound interest compounded half yearly

Answer 1

Answer:

Step-by-step explanation:

It depends on the interest rate.

At 10% compounded annual, your principal will double (2X) in 8 years.

At 25%, your principal with 10X in 10 years.

so it really depends.

Answer 2

It will take 3.6 years to double the amount

Step-by-step explanation:

Let the principal be x

We are supposed to find After how many years would the amount payable on loan be twice the principal is lent at 20% compound interest compounded half yearly

Amount = 2x

Rate of interest r =20% = 0.2

No. of compounds per year = n = 2

$Amount = P(1+\frac{r}{n})^{nt}\\2x=x(1+\frac{0.2}{2})^{2t}\\2=(1.1)^{2t}\\t=3.63$

So, It will take 3.6 years to double the amount

#Learn more:

Find the amount and compound interest on rs 750 lent at compound interest of 12% per annum for one year , if the interest is payable half yearly

https://brainly.in/question/5603012