A sum of ₹3,000 amounts to ₹6,000 in two years at compound interest. The interest for four years is:
- A₹6,000
- B₹9,000
- C₹12,000
- D₹3,000
Solution & Step-by-step Explanation
Under compound interest, a sum grows by a constant multiplier over equal periods of time.
Given:
Initial Principal () = ₹3,000
Amount after years () = ₹6,000
The growth factor for a -year interval is:
This means the amount doubles every years.
Therefore, the amount after years () will be:
The total interest earned over years is:
Given:
Initial Principal () = ₹3,000
Amount after years () = ₹6,000
The growth factor for a -year interval is:
This means the amount doubles every years.
Therefore, the amount after years () will be:
The total interest earned over years is: