Simple Interest Practice Test 2

Question : 39 of 40

Marks: +1, -0

A sum of money placed at compound interest doubles itself in 5 years. It will amount to eight times itself in:

12 years
10 years
20 years
15 years

Solution:

Let the sum of money = x
By compound interest, the money is doubled after five years.
So, it becomes 2x.
Again after five years, it doubles itself.
So, it becomes

2x× 2=4 x .

After the five years it doubles itself it become

= 4x× 2=8 x

So, this process continues for three times and take make a time of 15 years to the amount become eight times of itself.

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