# TANCET - XAT Math Question : Compound Interest

The question given below is a sample practice problem in Compound Interest. It is an Arithmetic Topic and the problem provides an understanding of finding the number of years it takes a sum of money to double if invested in compound interest.

## Question

Rs.100 doubled in 5 years when compounded annually. How many more years will it take to get another Rs.200 compound interest?

- 10 years
- 5 years
- 7.5 years
- 15 years
- 8 years

Correct Answer -

**5 years**. Choice (2)

#### Explanatory Answer

Rs.100 invested in compound interest becomes Rs.200 in 5 years.

The amount will double again in another 5 years.

i.e., the amount will become Rs.400 in another 5 years.

So, to earn another Rs.200 interest, it will take another 5 years.

Correct answer choice (2).

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