Mr. Kaushik invested ₹1,00,000 in a bank that offers a simple interest rate of 10% per annum. After how many years will his investment triple?
Question
Mr. Kaushik invested ₹1,00,000 in a bank that offers a simple interest rate of 10% per annum. After how many years will his investment triple?
Solution
To find out when Mr. Kaushik's investment will triple, we need to use the formula for simple interest, which is:
I = PRT/100
Where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time period
In this case, we know that the principal amount (P) is ₹1,00,000 and the rate of interest (R) is 10% per annum. We want to find out when the investment will triple, which means the total amount will be ₹3,00,000. Therefore, the interest (I) will be ₹3,00,000 - ₹1,00,000 = ₹2,00,000.
We can now substitute these values into the formula and solve for T (time):
2,00,000 = 1,00,000 * 10 * T / 100
Solving for T gives:
T = 2,00,000 * 100 / (1,00,000 * 10)
T = 20 years
So, Mr. Kaushik's investment will triple in 20 years.
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