Multiple choice

A sum of money deposited at a certain rate of compound interest per annum doubles itself in 4 years. In how many years will it become 16 times itself at the same rate?

  1. 16

  2. 12

  3. 10

  4. 8
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If a sum doubles in 4 years, it grows by a factor of 2 every 4 years. To reach 16 times (which is 2^4), it takes 4 cycles of 4 years each. Thus, 4 * 4 = 16 years.

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