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An amount triples in 4 years under compound interest at a certain rate of interest, the interest is being compounded annually, the time it would take to become 9 times itself.
    Correct answer is '8'. Can you explain this answer?
    Verified Answer
    An amount triples in 4 years under compound interest at a certain rate...
    It is given that the sum triples in 4 years. If it has become 9 times itself, it was tripled twice. Let the amount be P, and it gets tripled in 4 years at R% p.a.
    So P(1 + (r/100))4 = 3P
    Or, (1 + (R/100))4 = 3
    Let it take n years to become 9 times.
    Or, P(1 + (R/100))n = 9P
    Or, (1 + R/100)n = 9
    Or, [(1 + (R/100))4]n/4 = 32
    Or, 3n/4 = 32 or, n/4 = 2
    Or n = 8.
    This question is part of UPSC exam. View all CAT courses
    Most Upvoted Answer
    An amount triples in 4 years under compound interest at a certain rate...
    Given:
    - The amount triples in 4 years under compound interest.
    - The interest is being compounded annually.

    To Find:
    The time it would take for the amount to become 9 times itself.

    Solution:

    Step 1: Understand the Problem
    We need to find the time it takes for the amount to become 9 times itself. Let's assume the principal amount is P and the rate of interest is r.

    Step 2: Formulate the Compound Interest Formula
    The compound interest formula is given by:
    A = P(1 + r/n)^(nt)

    Where:
    A = Final amount
    P = Principal amount
    r = Annual interest rate (in decimal form)
    n = Number of times the interest is compounded per year
    t = Number of years

    Step 3: Solve the Problem
    Let's assume the initial amount is A1 and the time taken to triple the amount is t1 (which is given as 4 years).
    Using the compound interest formula, we have:
    A1 = P(1 + r)^t1

    We are given that the amount triples in 4 years, which means A1 = 3P.
    Therefore, 3P = P(1 + r)^4

    Simplifying the equation, we get:
    3 = (1 + r)^4

    Now, let's assume the time it takes for the amount to become 9 times itself is t2.
    Using the compound interest formula again, we have:
    A2 = P(1 + r)^t2

    We are given that the amount becomes 9 times itself, which means A2 = 9P.
    Therefore, 9P = P(1 + r)^t2

    Simplifying the equation, we get:
    9 = (1 + r)^t2

    Step 4: Solve the Equations
    From our previous equations, we have:
    (1 + r)^4 = 3 -- Equation 1
    (1 + r)^t2 = 9 -- Equation 2

    Taking the square root of both sides of Equation 2, we get:
    1 + r = 3^(1/2)
    1 + r = √3

    Now, let's solve Equation 1:
    (1 + r)^4 = 3
    (√3)^4 = 3
    3^2 = 3
    9 = 3

    Since both sides of Equation 1 are equal, we can say that the rate of interest (r) is 0.

    Step 5: Find the Time Taken
    Substituting the value of r = 0 in Equation 1, we get:
    (1 + 0)^4 = 3
    1^4 = 3
    1 = 3

    Since the equation is not satisfied, we can conclude that the time taken for the amount to become 9 times itself is not possible with the given conditions.

    Therefore, there is no valid solution to this problem.

    Final Answer:
    There is no valid solution.
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