By Ajay Kumar

Verified by Ajay Kumar

An amount doubles in 7 years under compound interest. How many years will it take for the amount to grow to 16 times its original value?

  1. 21 years

  2. 28 years

  3. 35 years

  4. 42 years

Answer: B

Solution

The amount doubles every 7 years. Since \(16=2^4\), the amount must double 4 times. Time = \(4\times7=28\) years. Trick: Express the required multiple as a power of 2.

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