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An amount doubles itself at compound interest in 5 years. How many years will it take to make the amount 16 times itself ?
Let the rate of interest be R.
The amount doubles itself at compound interest in 5 years.
$$P\times\left(1+\dfrac{R}{100}\right)^5=2P$$
$$1+\dfrac{R}{100}=2^{\frac{1}{5}}\rightarrow1$$
We need to find the number of years it will take to make the amount 16 times of the original. Let it be n years.
$$P\times\left(1+\dfrac{R}{100}\right)^{n}=16P$$
$$P\times\left(2^{\frac{1}{5}}\right)^n=16P$$
$$2^{\frac{n}{5}}=2^4$$
$$\dfrac{n}{5}=4$$
$$n=20$$ years.
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