If a sum of money compound annually amounts of thrice itself in 3 years. In…
20252024
If a sum of money compound annually amounts of thrice itself in 3 years. In how many years will it become 9 times itself?
- A.
6
- B.
8
- C.
9
- D.
10
Attempted by 18 students.
Show answer & explanation
Correct answer: A
Answer: 6
Explanation:
Let the principal be P. Since the amount triples in 3 years: P*(1+r/100)^3 = 3P, so (1+r/100)^3 = 3 and the annual growth factor is (1+r/100) = 3^(1/3).
For the amount to become 9 times in n years: (1+r/100)^n = 9. Substituting the growth factor gives (3^(1/3))^n = 9, so 3^(n/3) = 3^2.
Compare exponents: n/3 = 2, hence n = 6 years.