Q2 Explain about the doubling period and future value. Solve the below given problem:

Q2 Explain about the doubling period and future value. Solve the below given problem:

Under the ABC Bank’s Cash Multiplier Scheme, deposits can be made for periods ranging from 3 months to 5 years and for every quarter, interest is added to the principal. The applicable rate of interest is 9% for deposits less than 23 months and 10% for periods more than 24 months. What will be the amount of Rs. 1000 after 2 years?

Explanation of doubling period

Solving the problem

Explanation of future value

Answer: Doubling period

Doubling period is the period which makes the investment as “Doubled”, that is the amount invested fetches 100% return.

Leave a Reply

Your email address will not be published. Required fields are marked *