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Question
A sum of money under compound interest, interest being compounded half yearly, doubles in 3 years. In how many years it will become 32 times itself?
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Answer
Hi Fareena Dave,
It is given,
P(1+r/200)^6 = 2P
(1+r/200)^6 = 2 ....... (1)
P(1+r/200)^m = 32P
P(1+r/200)^m = 32 ...... (2)
Solving (1) and (2), we get m = 30
30 half-yearly to become 32 times, i.e. 15 years to become 32 times.
Hope this helps!
