Best Answer

Rs 2000.

The amount a after n years of an amount c with interest rate r % is:

a = c(1 + r/100)^n

After 3 & 6 years of the question there is:

Rs 4000 = c(1 + r/100)^3

Rs 8000 = c(1 + r/100)^6

Dividing the second by the first gives:

Rs 8000 ÷ Rs 4000 = (c(1 + r/100)^6) ÷ (c(1 + r/100)^3)

→ 2 = (1 + r/100)^3

Using the first equation and substituting for (1 + r/100)^3 found above:

Rs 4000 = c(1 + r/100)^3 = 2c

→ c = Rs 2000

Alternatively:

As it is compound interest, the saved interest also attracts interest; the amount doubles in the 3 years from year 3 to year 6, so it doubles every 3 years.

Therefore initially it must be half the value at 3 years

→ it is ½ × Rs 4000 = Rs 2000.

Q: A sum of money becomes Rs 4000 after three years and Rs 8000 after six years on compound interest The sum is .....?

Write your answer...

Submit

Still have questions?

Continue Learning about Other Math

The difference between 2 years and 3 years is another addition of the interest. 7396 × (1 + rate/100) = 7950.7 → rate = (7950.7/7396 - 1) × 100 = 7.5 % compounded per year.

If you're simply adding five percent onto the value at the end of each of the three years - the final value would be 578.8125

Quarterly.Quarterly.Quarterly.Quarterly.

How much is three figures

87.6564 to three decimal places becomes 87.656.

Related questions

The difference between 2 years and 3 years is another addition of the interest. 7396 × (1 + rate/100) = 7950.7 → rate = (7950.7/7396 - 1) × 100 = 7.5 % compounded per year.

AnswerCompound interest works like this.Take a principle (The amount of money you deposit) of $10,000.Lets say that the interest rate is 8% and that it compounds anually.At the end of one year you would have $10,800.With simple interest, at the end of two years, you would have $11,600 because you only earn interst on the principle.After three years you would have $12,400.However, with compound interest, you will earn interest on not just the principle, but the compounded interest as well.Therefore, with compound interest, at the end of two years, you would have 11,664.After three years it would be $12,597.12 and so on.

800 x (1.04)6 ie Rs1012.26

time, amount, and interest

3% is the same as 0.03 and 0.03*110,000 = 3,300 in one year If it is simple interest, it will be 3300 every year. If it is compound interest, the 2nd years interest will be based on starting amount with first years interest added to it, and so on

Yes, twenty-three is a compound word.

It is 202.48 units of currency.

yeah, you spelled monts instead of months, not sure i want to further this conversation your company.

If you're simply adding five percent onto the value at the end of each of the three years - the final value would be 578.8125

This would be a gain of 3300 assuming it is savings and 3% is APR. The second year would be higher, assuming compound as opposed to simple interest

My Credit Union, Money Supermarket, and Bankrate are three very reliable online sources to visit when you are researching and comparing credit card interest rates.

If a material contains three elements joined in a fixed proportion, then it is a compound. It can only be separated by a chemical reaction.