Question

In how much time Rs. 10 lacs can be approximately doubled, if invested at 8% compounded annually?
Options: 8 yrs
9 yrs
10 yrs
12 yrs

Answer 1

Answer: 9 years

Step-by-step explanation:

Here the given principal amount, P = 10,00,000

Annual Rate of interest = 8%

Let after x years the amount is doubled,

Thus,

$1000000(1+\frac{8}{100} )^x = 2000000$

⇒ $(1+0.08)^x = 2$

⇒ $x log (1.08)= log 2$

⇒  $x=\frac{log (2)}{log (1.08)}=9.006$

Thus, approximately after 9 years the amount will be doubled.