A sum of money doubles itself in 6 years at compound interest. In how many years will it become 8 times itself?
A. 18 years
B. 12 years
C. 24 years
D. 42 years
A. 18 years
B. 12 years
C. 24 years
D. 42 years
Best answer
Answer: A. 18 years
Answer: (A) 18 years
8 = 2³, so it needs three doubling periods: 3 × 6 = 18 years.
Trap: 42 years is what you get by treating it as simple growth (100% in 6 years, so 700% needs 42 years).
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