Multiple choice

If a certain sum becomes 4 times in a 8 years at compound interest. Then in how many years, it will become 256 times?

  1. 16 year

  2. 32 year

  3. 40 year

  4. 26 year

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If sum becomes 4 times in 8 years, then 4 = (1 + R)^8, so (1+R) = 4^(1/8) = 2^(1/4) = √√2. To become 256 times: 256 = (1+R)^n = 2^(n/4). Since 256 = 2^8, we get n/4 = 8, so n = 32 years. Alternatively: 4 times in 8 years means doubling every 4 years (since 2^2 = 4). To reach 256 = 2^8, we need 8 doublings, which takes 8 × 4 = 32 years.