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Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound

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Bunuel
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Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound [#permalink] New post   17 Jun 2021, 02:45
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Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound interest per annum. At the end of 8 years, he finds that his money has doubled. What approximately is the rate of interest BNP bank paid him?

(A) 9%
(B) 12%
(C) 15%
(D) 16%
(E) 18%
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A
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SirJeepsALot
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Re: Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound [#permalink] New post   05 Jul 2021, 00:17
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The calculations for this are really tricky, especially without calculator. However, i used options to arrive at the solution.

Since the time taken by the amount to double is 8 years, we can safely eliminate C,D,E. Because even at simple interest, the amount will double in less than 8 years for these respective interest rates and compound interest always results in a larger amount hence would take less time to double than SI.

B, 12. Simple interest @12% will almost double in 8 years, (around 1.96times) hence we can eliminate this as well.

Now we are only left with A.
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Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound [#permalink] New post   12 Jul 2021, 12:42
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priyanka9601 wrote:
Bunuel wrote:
Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound interest per annum. At the end of 8 years, he finds that his money has doubled. What approximately is the rate of interest BNP bank paid him?

(A) 9%
(B) 12%
(C) 15%
(D) 16%
(E) 18%


How to you solve the calculation fast?


Ruke of 72
https://www.investopedia.com/terms/r/ruleof72.asp
You can calculate years given a rate or rate given years.

72/8=9
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priyanka9601
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Re: Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound [#permalink] New post   12 Jul 2021, 03:49
Bunuel wrote:
Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound interest per annum. At the end of 8 years, he finds that his money has doubled. What approximately is the rate of interest BNP bank paid him?

(A) 9%
(B) 12%
(C) 15%
(D) 16%
(E) 18%


How to you solve the calculation fast?
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RS81
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Re: Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound [#permalink] New post   12 Jul 2021, 18:51
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For compound interest any investment doubles in 72yrs at the rate of 1%
If the rate of interest is 10% then number of yrs it will take to double = 72/10 = 7.2yrs

Time is given and rate of interest you need to find
Let the rate of interest be x%
72/x = 8
x=9
Answer = 9yrs

Note = Above is applicable only on the case of amount is double that of principle
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Re: Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound [#permalink] New post   30 Oct 2023, 23:06
Hello from the GMAT Club BumpBot!

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Re: Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound [#permalink]
30 Oct 2023, 23:06
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