A sum, at the compound rate of interest, becomes 2\(\frac{1}{2}\) times in 6 years. The same sum becomes how many times in 18 years?
- AOption (a)
\(\frac{625}{16}\)
- BOption (b)
\(\frac{5}{2}\)
- COption (c)
\(\frac{125}{8}\)
- DOption (d)
\(\frac{25}{4}\)
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Correct answer
\(\frac{125}{8}\)
Why this answer is correct
Given:
A sum becomes \({2} {1 \over 2}\) in 6 years.
Calculation:
From the data,
Sum = \( {5 \over 2}\) in 6 years
In 12 years,
Sum = \( {5 \over 2}\) × \( {5 \over 2}\) = \( {25 \over 4}\)
In 18 years,
Sum = \( {5 \over 2}\) × \( {5 \over 2}\) × \( {5 \over 2}\) = \( {125 \over 8}\)
∴ The sum becomes \( {125 \over 8}\) in 18 years.