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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

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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

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2 answers

2 vote
Answered by on | Votes 2 |
Its very simple question 4 years is the correct answer.

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2 vote
Answered by on | Votes 2 |

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




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