If a sum of money doubles itself at a fixed rate of compound interest per annum in years, find in how many years it will become four times.
- A
- B
- C
- D
Solution & Step-by-step Explanation
Let the initial sum of money be and the rate of compound interest per annum be .
According to the problem, the sum doubles itself in years:
We want to find the time in which the sum becomes times its original value:
We can express as :
Substitute the value of from Equation 1 into Equation 2:
Comparing exponents on both sides:
According to the problem, the sum doubles itself in years:
We want to find the time in which the sum becomes times its original value:
We can express as :
Substitute the value of from Equation 1 into Equation 2:
Comparing exponents on both sides: