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Compound Interest Practice Test 4
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© examsnet.com
Question : 1
Total: 40
A sum of money doubles itself at annual rateof compound interest in 6 years. In how many years will it become 16 times at the same rate of compound interest?
48 years
36 years
24 years
20 years
None of these
Validate
Solution:
2
x
=
x
(
1
+
r
100
)
6
⇒
2
=
(
1
+
r
100
)
6
⇒
2
4
=
(
1
+
r
100
)
24
⇒
16
=
(
1
+
r
100
)
24
So, it will take 24 years to attain a sum that is 16 times at the same rate of interest.
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