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
1). 6 years
2). 4 years
3). 8 years
4). 5 years
Let the principal be 1.
A=P ($1+\frac{R^{T}}{100}$)
8 = 1 ($1+\frac{R^{3}}{100}$)
$2^{3}$ = ($1+\frac{R^{3}}{100}$)
$2^{4}$ = ($1+\frac{R^{4}}{100}$)
Time = 4 years