A sum of money on compound interest triples itself in 20 years. After 40 years, it will become :
Answer & explanation
Correct answer: option 2
We have,
A sum of money on compound interest triples itself in 20 years.
Means,
Sum Amount Time
1 3 ( In 20 years)
1 32 = 9 ( In 40 years)
Method,
If the amount (a) becomes n time after p years then, after n × m time the amount will become am