Multiple choice

If a sum on compound interest becomes three times in 4 years, then with the same interest rate, the sum will become 27 times in :

  1. 8 years

  2. 36 years

  3. 24 years

  4. 12 years

  5. None
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In compound interest, if a sum becomes 3 times in 4 years, it becomes 3^n times in 4*n years. For 27 times (3^3), time = 4 * 3 = 12 years.

AI explanation

Since the sum becomes three times in four years, it implies the growth factor for a four-year period is three. To reach a sum that is 27 times the original, we observe that 27 equals three cubed, meaning it requires three of these four-year periods. Multiplying the years gives three multiplied by four, resulting in 12 years.

Keep practicing — related questions