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Q.

A sum of money under compound interest doubles itself in 4 years. In how many years will it become 16 times itself?


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a

12

b

16

c

8

d

6 

answer is B.

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Detailed Solution

In 4 years, sum P doubles itself. So, A = 2P
A=P1+R100n
⇒2P=P1+R1004
⇒2=1+R1004
If A = 16P
⇒P1+R100n=16P
⇒1+R1004n4=16
⇒2n4=24
⇒n=16
  
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