Question

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

Answer 1

Answer: It would take almost 20 years 9 months to double the invested amount.

Step-by-step explanation:

Given that,

P= 10 lacks= Rs 10,00,000

R= 8% compounded annually

The formula of compound interest is given by:

A= P(1+R/100)^n ( where A= amount, P= principal, R= interest, and n= duration)

Since the investment got doubled, so A= 2P

2P= P(1+8/100)^n

2= 1.08^n

Taking log both side,

log2= n*log1.08

Further solving, we get:

0.6931= n*0.0334

n= 0.6931/0.0334

n=20.75 yrs  

n= 20 years 9 months (approx)

Answer 2

Answer:

8 years

Step-by-step explanation:

10 L+ 8% = 1080000

1080000+8%= 1166400

1166400+8%= 1259712

1259712+8%= 1360489

1360489+8%=1469380

and go on....