A sum of money invested in a compound interest scheme quadruples in 8 years. How long will the sum take to become 32 times?Question 7Answera.20 yearsb.10 yearsc.21 yearsd.22 years
Question
A sum of money invested in a compound interest scheme quadruples in 8 years. How long will the sum take to become 32 times?Question 7Answera.20 yearsb.10 yearsc.21 yearsd.22 years
Solution
The problem states that the sum of money quadruples (or becomes 4 times) in 8 years. This means that the money is doubled twice in 8 years (since 2*2 = 4).
So, to find out how long it will take for the sum to become 32 times, we need to figure out how many times the money needs to be doubled to reach 32.
Since 32 = 2^5, the money needs to be doubled 5 times.
If it takes 8 years for the money to be doubled twice, then it would take (8/2)*5 = 20 years for the money to be doubled 5 times.
So, the answer is a. 20 years.
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