ABC26GN4192 · Compound Interest

Subject: General Aptitude · Chapter: Compound Interest · Exam: 2010 · Marks: · Difficulty:

A sum of money at compound interest doubles itself in 15 years. It will become eight times of itself in
(a)45 years
(b)48 years
(c)54 years
(d)60 years
Answer
Answer (as printed): A
Explanation
$P\left(1+\frac{R}{100}\right)^{15}=2 P \Rightarrow\left(1+\frac{R}{100}\right)^{15}=2$ Let $P\left(1+\frac{R}{100}\right)^{n}=8 P$ $$\begin{aligned} & \Rightarrow\left(1+\frac{R}{100}\right)^{n}=8=2^{3}=\left\{\left(1+\frac{R}{100}\right)^{15}\right\}^{3} \\ & \Rightarrow\left(1+\frac{R}{100}\right)^{n}=\left(1+\frac{R}{100}\right)^{45} \Rightarrow n=45 . \end{aligned}$$ ∴ Required time $=45$ years.

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

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