Bank A offers an investment account where interest is earned continuously. The bank advertises that money invested in the account will double in 8 years.
A certain amount of money is invested in the account at the start of the year 2015.For what year is the amount in the account three times the initial investment?

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2033 years

2031 years

2029 years

2032 years

answer is B.

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Detailed Solution

The bank advertises that money deposited into the account will double in 8 years.
We need to find the year when the amount in the account will be three times the initial investment invested in 2015.
Because the amount of interest after 8 years is

, where, P = principal amount. It will take another 8 years to get the amount of three times the initial investment.
Thus, the total number of years required to obtain an amount of three times the initial investment is

years.
In a year,

the amount will be three times the initial investment.
So option 2 is correct.

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