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In this question, we are given that a sum triples in ten years under compound interest at a certain rate. We need to find out in how many years the sum will become nine times.
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial sum)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years
Given that the sum triples in ten years, we can write the equation:
3P = P(1 + r/1)^(1*10)
Simplifying this equation, we get:
3 = (1 + r)^10
To find out when the sum becomes nine times, we can set up the equation:
9P = P(1 + r/1)^(1*t)
Simplifying this equation, we get:
9 = (1 + r)^t
Comparing the two equations, we can see that we need to find the value of t such that (1 + r)^t = 9.
Solving this equation, we find that t = 20.
Therefore,