A sum of money becomes eight times in 3 years, If the rate is compoun…

Question

A sum of money becomes eight times in 3 years, If the rate is compounded annually. In how much time will the same amount at the same compound rate become sixteen times ?

Accepted Answer

Option B. 4 years. Answer & Solution Answer: Option B Solution: & Let principal = P & Case (I) & Time = 3 years, & Amount = 8P & 8 P = P ( 1 + R100 )^3 & ( 2 )^3 = ( 1 + R100 )^3 & Taking cube root of both sides, & 2 = ( 1 + R100 ) & R = 100 \% & Case (II) & Let after t years it will be 16 times &…