In compound interest, if an amount becomes 'x' times the principal in 'y' years, it will become $x^n$ times the principal in $n \times y$ years, assuming the rate and compounding period remain constant.
Suresh lent a sum of money on compound interest in such a way that it amounted to three times in 4 years. For how much time should he invest his money so that he gets back an amount which is 9 times of the sum of money lent by him?
Asked in HAS Prelims 2023 · Topic: Money & Banking (Financial Markets: Money Market and Capital Market (Components, Instruments, Role))
More Economic Development questions
- The compound interest on a certain sum for 3 years at 8% per annum is Rs. 1,94,784. What is the simple interest on the $\frac{9}{10}$ part of the sum for the same time but at a rate of interest per annum which is $1\frac{1}{2}$ time the rate of interest per annum as applicable for compound interest?
- Natesh borrowed some money at the rate 6% p.a. for the first 3 years, 9% p.a. for the next 5 years and 13% p.a. beyond 8 years. The above are all simple interest rates. If Natesh pays a total of ₹ 8,160 after 11 years, how much money did he borrow?
- Which of the following is/are true with respect to the Sovereign Gold Bond Scheme (GBS) ?
- The type of capital market in which a security can be sold several times is ______ .
- The Securities and Exchange Board of India (SEBI) became an autonomous body in __________.
- Which of the following is/are correct matches? A B Improves the competitiveness of Devaluation the domestic exports in foreign of a currency Countries Credit rating Regulated by by the Reserve agencies Bank of India Acquiring new techno‐ Capital expenditure logy How many of the above pairs is/are correctly matched?
- The act of simultaneously buying in one market and selling in another market is called :
- The SEBI has set up an Advisory Committee on Hybrid Securities. In respect of Hybrid Securities which of the following statement/s is / are correct? (i) Hybrid Securities are securities that have a combination of Debt and Equity characters. (ii) Common Stock was the first type of a hybrid security. (iii) The holders of common stock receive dividends before the holders of preferred stocks. (iv) The Hybrid Securities are a way for Banks / companies to borrow money from investors.