Compound Interest Practice Test 4

Question : 1 of 40

Marks: +1, -0

A sum of money doubles itself at annual rateof compound interest in 6 years. In how many years will it become 16 times at the same rate of compound interest?

48 years
36 years
24 years
20 years
None of these

Validate

Solution:

2x=x(1+r/100)^6

⇒ 2=(1+r/100)^6

⇒ 2^4=(1+r/100)^24

⇒ 16=(1+r/100)^24

So, it will take 24 years to attain a sum that is 16 times at the same rate of interest.

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