If a sum on compound interest (compounded yearly) becomes three times in 4 years, then with the same interest rate, the sum will become 81 times in: |
12 years 18 years 15 years 16 years |
16 years |
We know , Amount = Principal × ( 1 + \(\frac{rate }{100}\) )t Let principal = P 3P = P × ( 1 + \(\frac{rate }{100}\) )4 3 = ( 1 + \(\frac{rate }{100}\) )4 --------(1) Now, After t years sum becomes 81 times of itself. 81P = P × ( 1 + \(\frac{rate }{100}\) )t 34 = P × ( 1 + \(\frac{rate }{100}\) )t Using equation 1 , ( 1 + \(\frac{rate }{100}\) )16 = ( 1 + \(\frac{rate }{100}\) )t So , t = 16 years
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