2025 · Q49
What is the least number of complete years in which a sum of money put out at 20% compound interest (compounded annually) will be more than doubled?
Elementary MathematicsSimple and Compound Interest
- A2
- B3
- C4
- D5
Explanation
Doubling needs (1.2)^n > 2. Since 1.2^2 = 1.44 and 1.2^3 = 1.728 < 2, three years are not enough; 1.2^4 = 2.0736 > 2, so four years suffice. Hence the least number of complete years is 4, option (c).