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an amount gets doubled in 15 years with compund intrest.In how many years amount will become 8 times,using the same compund intrest ?

  • maths - ,

    an amount gets doubled in 15 years with compund intrest.In how many years amount will become 8 times,using the same compund intrest ?

    S = P(1 + i)^n where P = the invested amount, i = the decimal periodic interest rate and n = the number of inrterest paying periods.

    Therefore, 2 = 1(1 + i)15 (assuming interest compounded yearly)

    Solving, i = .04729 making the annual interest rate of 4.729%.

    At the same interest rate and AS/P = 8,
    8 = (1.047829)^n.

    solving, n = ~45 years.

    Checking, S = 1(1.04729)^45 = ~8.

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