ABC26GN4138 · Compound Interest

Subject: General Aptitude · Chapter: Compound Interest · Exam: · Marks: · Difficulty:

A sum of money doubles itself at compound interest in 15 years. In how many years will it become eight times?
Answer
Answer (as printed):
Explanation
$P\left(1+\frac{R}{100}\right)^{15}=2 P \Rightarrow\left(1+\frac{R}{100}\right)^{15}=\frac{2 P}{P}=2$ Let $P\left(1+\frac{R}{100}\right)^{n}=8 P \Rightarrow\left(1+\frac{R}{100}\right)^{n}=8=2^{3}=\left\{\left(1+\frac{R}{100}\right)^{15}\right\}^{3}$ [using (i)] $$\Rightarrow\left(1+\frac{R}{100}\right)^{n}=\left(1+\frac{R}{100}\right)^{45} \Rightarrow n=45 .$$ Thus, the required time $=45$ years.

Explanation as extracted from the printed page; notation may be imperfect.

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