Question

if a bank is offering 16% per annum rate of interest , then how much times will take to triple a sum?

Answer 1

Answer:

7.4 years

Step-by-step explanation:

Considering rates on interest as compound rate of interest

A=P(1+r)^t

A= 3P

P= principal amount

r= 16% per annum

t = time to triple the amount P

3P= P(1.16)^t

3=1.16^t

taking log both sides

log 3= log 1.16^t

log 3= t ×log 1.16

t= log3/log 1.16

t= 0.4771/0.0644

t=7.4 years

It will take 7.4 years to triple the amount in 16% per annum rates of interest  

Answer 2

Answer

7.4 years

Step-by-step explanation:

Considering rates on interest as compound rate of interest

A=P(1+r)^t

A= 3P

P= principal amount

r= 16% per annum

t = time to triple the amount P

3P= P(1.16)^t

3=1.16^t

taking log both sides

log 3= log 1.16^t

log 3= t ×log 1.16

t= log3/log 1.16

t= 0.4771/0.0644

t=7.4 years

It will take 7.4 years to triple the amount in 16% per annum rates of interest