If a sum on compound interest becomes three times in 4 years, then with the same interest rate, the ...

If a sum on compound interest becomes three times in 4 years, then with the same interest rate, the sum will become 81 times in:

Quiz

Answer/Solution

16 years

Steps/Work

Explanation:
The sum P becomes 3P in 4 years on compound interest
3P = P(1+R/100)4
⇒ 3 = (1+R/100)4
Let the sum P becomes 81P in n years
81P = P(1+R/100)n
⇒ 81 = (1+R/100)n
⇒ (3)4 = (1+R/100)n
⇒ ((1+R/100)4)4 = (1+R/100)n
⇒ (1+R/100)16 = (1+R/100)n
n=16
i.e, the sum will become 81 times in 16 years
ANSWER IS C