Question

in how much time rs 10 lakhs can be approximately doubled ,if invested at 8% compunded annually?

Answer 1

As per the above question, the money is invested at 8% compounded annually.

So, the formula of simple interest to be followed is -A=P(1+r)n.Where, A = the amount which you are supposed to get.

P = total investment = 10 lakhs.

So, A= 2P after n years.r = rate of interest = 0.08.n= number of years for investment.

A=P(1+r)n,or, 2P = P (1 + 0.08)n,or, 2000000 = (1000000 + 80000)n,or, n = 9 years (approximately)