Multiple choice

An amount will become 8 times of itself in 3 years with compound interest. Then in how much time it will become 16 times of itself?

  1. 8 years

  2. 4 years

  3. 6 years

  4. 12 years

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If amount becomes 8 times in 3 years with compound interest, then (1+r)³ = 8, giving 1+r = 2, so r = 100%. To become 16 times, we need (1+r)ᵗ = 16, meaning 2ᵗ = 16, so t = 4 years. At 100% compound interest, the amount doubles every year.

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