Answer :
Final answer:
To find the compound interest obtained after 12 years, we can use the formula: Amount = Principal*(1+rate/100)^time. Using given information, we can calculate the compound interest after 12 years as Rs. 8549.33, which is closest to Rs. 9000.
Explanation:
To find the compound interest obtained after 12 years, we can use the formula:
Amount = Principal*(1+rate/100)time
Given that the compound interest obtained after 8 years is Rs. 5000, we can set up the equation as:
Principal*(1+20/100)8 = Principal + 5000
Solving for Principal gives us:
Principal = 5000 / ((1+20/100)8 - 1)
Using this Principal value, we can calculate the compound interest after 12 years:
Compound Interest = Principal*(1+20/100)12 - Principal
Substituting the values and simplifying, we get the compound interest after 12 years as Rs. 8549.33, which is nearest to Rs. 9000.
