WBCS.LIVE practice question

A sum of money placed at compound interest doubles itself in 5 years. It will amount to eight times itself at the same rate of compound interest in

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 7 years
  2. 10 years
  3. 15 years
  4. 20 years

Correct answer and explanation

Correct answer: 15 years

Explanation: āœ… Correct Answer: C. 15 years šŸ“š Explanation: In compound interest, money doubles in 5 years. Eight times the amount is 2 to the power 3 times the original amount. The time taken is the number of power steps multiplied by the initial doubling period: 3 multiplied by 5 = 15 years. This shows the rapid growth of money under compounding.