In an investment scheme the investment triples in 5 years when invested at a certain rate of compound interest. How long will it take for accumulated interest to become 80 times the original investment.
Explanation:
When invested at a certain rate of compound interest, the amount triples in 5 years.
For accumulated interest to become 80 times the invested amount, total amount due must become 81 times the investment.
81 = 3 × 3 × 3 × 3
To triple the amount once, it takes 5 years. ∴ To triple the amount 4 times it will take 5 + 5 + 5 + 5 = 20 years.
Hence, 20.
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