Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

A sum of money becomes 27 times of itself in 18 years at compound interest. How much times will it become in 30 years?

Options:

243 times

216 times

144 times

81 times

Correct Answer:

243 times

Explanation:

ATQ,

P = 1   →  18yr   →   27 or 33  (Amount)

                    ↓                    ↓

                  ×1/3         cube-root*

                    ↓                    ↓

P = 1   →    6yr      →        (3)1 = 3

                    ↓                    ↓

                  ×5              power 5*

                    ↓                    ↓

P = 1   →    30yr      →     (3)5 = 243

So, in 30 years it becomes 243 times

 

OR

Amount = P (1+ \(\frac{r}{100}\))t

ATQ,

⇒ 27P = P (1+ \(\frac{r}{100}\))18    

⇒ 27 = (1+ \(\frac{r}{100}\))18             

⇒ (3)3 = (1+ \(\frac{r}{100}\))18

⇒ 3 = (1+ \(\frac{r}{100}\))6

⇒ (3)5 = (1+ \(\frac{r}{100}\))30

⇒ 243 = (1+ \(\frac{r}{100}\))30

So, in 30 years it becomes 243 times.