Statistics & Applications

Financial Math

Medium

applied

The number of years required for a sum of money to get tripple at the effective rate of 4% is : (Given $(1.04)^{28} = 3)$

7 years

14 years

28 years

56 years

✅ Correct Option: 3

For money to triple, the final amount must be 3 times the initial amount.

Using the compound interest formula where the final amount equals the initial amount multiplied by $(1 + \text{rate})^{\text{time}}$ :

Let the initial amount be $P$ and time be $t$ years.

Final amount $= 3P$

Rate $= 4\% = 0.04$

Setting up the equation:

$3P = P \times (1.04)^t$

Dividing both sides by $P$ :

$3 = (1.04)^t$

Given that $(1.04)^{28} = 3$

Comparing with the equation $3 = (1.04)^t$ :

$t = 28$

Therefore, the number of years required for the sum to triple is 28 years.

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The number of years required for a sum of money to get tripple at the effective rate of 4% is : (Given (1.04)28=3)(1.04)^{28} = 3)(1.04)28=3)

Solution

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CUET Mathematics Past Year Questions (Topic-Wise)

The number of years required for a sum of money to get tripple at the effective rate of 4% is : (Given $(1.04)^{28} = 3)$