If a sum on compound interest becomes three times in 4 years, then with the same interest rate, the sum will become 27 times in:
Options:
A . 8 years
B . 12 years
C . 24 years
D . 36 years
E . None of these
Answer: Option B - P ( 1 + R ) 4 = 3P ( 1 + R ) 4 = 3 ...(i) 100 100 Let P ( 1 + R ) n 100 = 27P ( 1 + R ) n 100 = 27 = (3)3 = ( 1 + R ) 4 100 x3 [using (i)] ( 1 + R ) n 100 = ( 1 + R ) 12 100 n = 12 Required time = 12 years.
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