If a sum of money doubles itself at compound interest in years, in how many years will it become four times?
- A
- B
- C
- D
Solution & Step-by-step Explanation
Under compound interest, a sum grows exponentially over equal intervals of time.
Let the initial principal be .
* In years, it becomes (doubles).
* In the next years, this amount will double again, becoming (four times).
Mathematically, if a sum becomes times in years, it will become times in years.
We want it to become times, and since , we have .
Let the initial principal be .
* In years, it becomes (doubles).
* In the next years, this amount will double again, becoming (four times).
Mathematically, if a sum becomes times in years, it will become times in years.
We want it to become times, and since , we have .