A sum of money at compound interest becomes 4 times in 3 years. In how many years will it become 16 times? MCQ with Answer and Explanation

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 248 = P * (10/100)^2 * (3 + 10/100) => 248 = P * (1/100) * (3.1) => 248 = P * 0.031 => P = 248 / 0.031 = Rs. 8000.

Explanation:
A = 500 × (1.04)² = 500 × 1.0816 = 540.80, CI = 540.80 − 500 = Rs. 40.80.

Explanation:
Effective rate = (1 + 0.03)² − 1 = 1.0609 − 1 = 0.0609 = 6.09%.