A sum of money placed at compound interest doubled itself in 3 years. How many times it becomes in 9 years?Choose the best optionClear Response610812
Question
A sum of money placed at compound interest doubled itself in 3 years. How many times it becomes in 9 years?
Choose the best option:
- 6
- 10
- 8
- 12
Solution
The problem states that the sum of money doubles in 3 years due to compound interest. This means that every 3 years, the sum of money multiplies by 2.
So, in 9 years, which is 3 sets of 3 years, the sum of money would multiply by 2 three times.
Mathematically, this is 2 (after 3 years) * 2 (after another 3 years) * 2 (after the final 3 years) = 8.
So, the sum of money would become 8 times its original amount in 9 years. Therefore, the correct option is 8.
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