Question

A sum of money at compound interest becomes its n times in A years then at same rate of interest it will be its n^x times in A×x years. How A×x years came?

Answer 1

If a sum becomes x times in y years at CI then it will be (x)^n times in ny years. Thus, if a sum becomes 3 times in 3 years it will be (3)^2 times in 2 x 3 = 6 years. Example: If a sum deposited at compound interest becomes double in 4 years when will it be 4 times at the same rate of interest? Solution: Using the above conclusion, we say that the sum will be (2)^2 times in 2 x 4 = 8 years.