A finance company declares that, at a certain compound interest rate,…

Question

A finance company declares that, at a certain compound interest rate, a sum of money deposited by anyone will become 8 times in 3 years. If the same amount is deposited at the same compound rate of interest, then in how…

Accepted Answer

Option A. 4 years. Answer & Solution Answer: Option A Solution: & P ( 1 + R100 )^3 = 8P & ( 1 + R100 )^3 = 8 & Let P ( 1 + R100 )^n = 16P & ( 1 + R100 )^n = 16 = 2^4 = ( 2^3 )^4/3 & ( 1 + R100 )^n = ( 8 )^4/3 & \ ( 1 + R100 )^3 \^4/3 = ( 1 + R100 )^4 & n = 4 & Required time 4 years

A finance company declares that, at a certain compound interest rate, a sum of money deposited by anyone will become 8 times in 3 years. If the same amount is deposited at the same compound rate of interest, then in how many years will it become 16 times ?

Solution