By Ajay Kumar

Verified by Ajay Kumar

An amount is said to double in 5 years with compound interest. How many years will it take for the amount to grow to 8 times its original value?

  1. 25

  2. 20

  3. 15

  4. 10

Answer: C

Solution

The amount doubles every 5 years. Since \(8=2^3\), it must double three times to become eight times its original value. Required time \(=3\times5=15\) years. Trick: Express the required multiple as a power of 2.

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