When an amount is placed at compound interest and becomes double in 5 years, the time required for it to become eight times can be found using the doubling pattern.
In compound interest, the amount grows by multiplication. Since the amount doubles in 5 years:
After 5 years: Amount =2× original
After 10 years: Amount =2×2=4× original
After 15 years: Amount =4×2=8× original
Using the compound interest formula A=P(1+r)t
Since the amount doubles in 5 years:
2=(1+r)5
For the amount to become 8 times:
8=(1+r)t
Since 8=23:
8=23
8=[(1+r)5]3
8=(1+r)15
Therefore t=15 years
The amount will become eight times in 15 years.
When money doubles in n years, it becomes 2k times in k×n years. Here, 8=23 and n=5, so the time required is 3×5=15 years.