A sum of money compounded annually doubles itself in 5 years. In how many years will it become four times of itself?

  1. A. 10 years
  2. B. 12 years
  3. C. 15 years
  4. D. 20 years

Correct Answer: A. 10 years

Explanation

If a sum doubles (2^1 times) in 5 years under compound interest, it will become four times (2^2 times) in 5 \times 2 = 10 years.

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