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A certain sum becomes k times in 5 year...

A certain sum becomes k times in 5 years at compound interest. In 30 years it will become how many times?

A

`5k `

B

`6k`

C

`k^6`

D

`k^5`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we need to understand the concept of compound interest and how the amount grows over time. ### Step-by-Step Solution: 1. **Understanding the Initial Condition**: - We are given that a certain sum becomes \( K \) times in 5 years at compound interest. - This means if we start with a principal amount \( P \), after 5 years, the amount \( A \) can be expressed as: \[ A = P \times K \] 2. **Using the Compound Interest Formula**: - The formula for compound interest is: \[ A = P \times \left(1 + \frac{R}{100}\right)^T \] - For our case, after 5 years, we can write: \[ P \times K = P \times \left(1 + \frac{R}{100}\right)^5 \] 3. **Cancelling the Principal**: - We can cancel \( P \) from both sides (assuming \( P \neq 0 \)): \[ K = \left(1 + \frac{R}{100}\right)^5 \] 4. **Finding the Amount After 30 Years**: - Now, we need to find out how many times the amount will become after 30 years. - Using the same compound interest formula for 30 years: \[ A_{30} = P \times \left(1 + \frac{R}{100}\right)^{30} \] 5. **Expressing in Terms of K**: - We can express \( \left(1 + \frac{R}{100}\right)^{30} \) in terms of \( K \): \[ \left(1 + \frac{R}{100}\right)^{30} = \left(\left(1 + \frac{R}{100}\right)^5\right)^6 = K^6 \] - Therefore, the amount after 30 years becomes: \[ A_{30} = P \times K^6 \] 6. **Final Expression**: - Again, cancelling \( P \): \[ \text{Amount after 30 years} = K^6 \] - Thus, the sum becomes \( K^6 \) times the original principal after 30 years. ### Conclusion: The final answer is that the sum will become \( K^6 \) times after 30 years.
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