Multiple choice

On compound interest a sum of money doubles itself after 3 years. In how many years will it amount to 16 times of itself?

  1. 16 years

  2. 12 years

  3. 8 years

  4. 6 years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

At compound interest, if amount doubles in 3 years, the amount multiplies by 2^n in n groups of 3 years. For 16 times = 2^4, we need 4 × 3 = 12 years. Option B is correct.

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