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Find the Rate at Which a Sum of Money Will Become Four Times the Original Amount in 2 Years, If the Interest is Compounded Half-yearly. - Mathematics

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Question

Find the rate at which a sum of money will become four times the original amount in 2 years, if the interest is compounded half-yearly.

Sum
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Solution

Let the rate percent per annum be R.
Then, 
\[A = P \left( 1 + R \right)^{2n} \]
\[4P = P \left( 1 + \frac{R}{200} \right)^4 \]
\[ \left( 1 + \frac{R}{200} \right)^4 = 4\]
\[\left( 1 + \frac{R}{200} \right) = 1 . 4142\]
\[\frac{R}{200} = 0 . 4142\]
R = 82 . 84
Thus, the required rate is 82 . 84 %.

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Chapter 14: Compound Interest - Exercise 14.3 [Page 21]

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RD Sharma Mathematics [English] Class 8
Chapter 14 Compound Interest
Exercise 14.3 | Q 17 | Page 21

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