Allied & ICAR Exam Bank • ALLIED_2476 NAT • 2 Marks

Section 8: General Aptitude

Quantitative Aptitude

Subtopic: Numerical Computation

Question Statement:

A sum of money invested at compound interest doubles itself in 4 years. In how many years will it become 8 times its initial value at the same interest rate?

Answer Key:

12

Step-by-Step Solution & Explanation

At CI, $A = P(1+r)^t$. If it doubles in 4 years, $(1+r)^4 = 2$. To become 8 times: $8 = 2^3 = ((1+r)^4)^3 = (1+r)^{12}$. Hence, it takes 12 years.
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