Question

Rs. 1000 doubled in 10 years when compounded annually. How many more years will it take to get another Rs. 2000 compound interest ?
1. 5 year
2. 10 years
3. 3 years
4. 4 years

Answer 1

Correct Answer - Option 2 : 10 years

Calculation:

According to the question:

Rs. 1000 invested in compound interest becomes Rs. 2000 in 10 years

The amount will double again in another 10 years.

So, the amount will become Rs. 4000 in another 10 years.

To earn another Rs. 2000 interest, it will take another 10 years

∴ The answer will be 10 years.