A sum of money triples it self in 3 years at compound interest. In how many years will it becomes 9 times. |
9 years 6 years 12 years 5 years |
6 years |
Compounding Annually, sum of money (P) becomes 3 times in 3 years 3P = P(1+ r/100)^3 Squaring on both sides, 9P2 = P2(1+ r/100)^2*3 9P = P(1+ r/100)^6 Comparing with the general equation of compound interest Thus the amount in the condition becomes 9 times in 6 years The correct answer is Option (2) → 6 years |