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A sum at R% compound interest doubles in 3 years. In 9 years it will be k times of the original principal. What is the value of k?

A. 

9

B. 

8

C. 

6

D. 

7

Answer
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Answer with explanation

Answer: Option B

Explanation

A = P[1+ r/100]^n

A == 2P in 3 years

2P = P[1 + r/100]^3         [dividing by ‘p’ both LHS and RHS]

2 = [1 + r/100]^3 …….(i)

kP = P[1 + r/100]^9

k = [1 + r/100]^9 ……(ii)

On cubing the eq. (i)

2^3 = { [1 + r/100]^3}^3

8 = [1 + r/100]^9 …..(iii)

COMPARING eq.(ii) & eq.(iii)

k = 8

Hence, 8 times

 

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