CMAT 2020 Solved Question Paper

Question : 15 of 100

Marks: +1, -0

A company publishes to its customers that at a certain compound interest rate, a sum of money deposited by anyone will become 8 times in 3 years. If the same amount is deposited at the same compound rate of interest, then in how many years will it become 16 times ?

4 years
3 years
3.5 years
4.5 years

Validate

Solution:

Here,

P (1+ {r}/{100} )^{3}=8 P

⇒

(1+ {r}/{100} )^{3}=8=2^{3}

⇒

(1+ {r}/{100} )=2

...(i)
Again,

(1+ {r}/{100} )^{n}=16 {P}

⇒

(1+ {r}/{100} )^{n}=16

⇒

2^{n} =16\;\;[ \from (i)]

∴

n =4

Hence, sum of money, it becomes 16 times in 4 years.

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