Mathematics for FinancePYQ Dec 22Question 1242 of 512
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A sum of money doubles itself in 4\displaystyle 4 years at certain compound interest rate. In how many years this sum will become 8\displaystyle 8 times at the same compound interest rate?

Options

A12 years
B14 years
C16 years
D18 years
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Correct Answer

✅ Option a — 12 years

All Options:

  • A12 years
  • B14 years
  • C16 years
  • D18 years

Detailed Solution & Explanation

**Derivation of Compounding Period to become 8 Times** Given: - A sum doubles itself in 4\displaystyle 4 years under Compound Interest. A4=P(1+r)4=2P  ⟹  (1+r)4=2A_4 = P(1 + r)^4 = 2P \implies (1 + r)^4 = 2 **Step 1: Set up the equation for the sum to become 8 times itself** At=P(1+r)t=8P  ⟹  (1+r)t=8A_t = P(1 + r)^t = 8P \implies (1 + r)^t = 8 **Step 2: Express 8 as a power of 2** 8=238 = 2^3 **Step 3: Substitute 2=(1+r)4\displaystyle 2 = (1 + r)^4** (1+r)t=[(1+r)4]3(1 + r)^t = \left[(1 + r)^4\right]^3 (1+r)t=(1+r)12  ⟹  t=12 years(1 + r)^t = (1 + r)^{12} \implies t = 12 \text{ years} Hence, **Option A** is the correct answer.

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