A certain investment placed at compound interest becomes 3 times its original value in 4years. In how many years will it grow to become 27 times the original amount?

(a) 36 years

(b) 22 years

(c) 12 years

(d) 8 years

Question

A certain investment placed at compound interest becomes 3 times its original value in 4years. In how many years will it grow to become 27 times the original amount?

(a) 36 years

(b) 22 years

(c) 12 years

(d) 8 years

ONLiNE UPSC · Accepted Answer

Since the amount triples every 4 years, and:

27 = 33

It will take:

4 &times; 3 = 12 years

Hence, option c is correct.

Compound Interest

Time taken for investment to grow to a certain value

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Compound Interest

Time taken for investment to grow to a certain value

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