Compound Interest Practice Test 3

Question : 16 of 40

Marks: +1, -0

The least number of complete years in which a sum of money put at 20% compound interest will be more than doubled is:

Solution:

Here,

P(1+20/100)^n > 2P

⇒(6/5)^2 > 2

Hence, if n = 4 then,

(6/5)^4=1296/625 >2

So, n = 4 years

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