Quantity I. A sum of money becomes tripple in 4 years at compound interest, compounded annually. In how many years it will become 9 times?
Quantity II. What must be the rate of interest if a given amount tripled itself in 20 years?
Quantity II. Since the amount was Rs 100. It becomes Rs 300 in 20 years. Rs 300 – Rs 100 = Rs 200 interest In 20 years, interest is Rs 200 In 1 year, the interest is Rs 200/20 Rate of interest = 10% per annum Hence Quantity I < Quantity II
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