Discussion

Question:

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

Explanation:

$P {(1 + \frac{20}{100})}^{n} > 2 P \Rightarrow {(\frac{6}{5})}^{n} > 2$

Now, $(\frac{6}{5} \times \frac{6}{5} \times \frac{6}{5} \times \frac{6}{5}) > 2$

So, n = 4 years.

Hence, option (b).

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