Menu
Popular Courses
Search
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
Options:
A .  5
B .  4
C .  4
D .  2
Answer: Option B

Answer : Option B

Explanation :

Let principal be P
$MF#%\begin{align}&\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} > 2P\\\\ &\text{P}\left(1 + \dfrac{20}{100}\right)^\text{T} > 2P\\\\ &\left(1 + \dfrac{20}{100}\right)^\text{T} > 2\\\\ &\left(\dfrac{120}{100}\right)^\text{T} > 2\\\\ &1.2^\text{T} > 2\end{align}$MF#%
Now let's find out the minimum value of T for which the above equation becomes true
If T = 1, 1.2T = 1.21 = 1.2
If T = 2, 1.2T = 1.22 ≈ 1.4
If T = 3, 1.2T = 1.23 ≈ 1.7
If T = 4, 1.2T = 1.24 ≈ 2.07 which is greater than 2
Hence T = 4
i.e., required number of years = 4



Was this answer helpful ?
Next Question

Submit Comment/FeedBack

Your email address will not be published. Required fields are marked *

Share this page with your friends!

Latest Videos

Chapter 1 - GLOBAL STEEL SCENARIO & INDI Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)
Direction Sense Test Part 1 Reasoning (Hindi)
Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE
Cube & Cuboid Part 1 Reasoning (Hindi)
Data Interpretation (DI) Basic Concept Reasoning (Hindi)
Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)
Real Numbers Part 7 Class 10 Maths
Real Numbers Part 1 Class 10 Maths
Polynomials Part 1 Class 10 Maths

Latest Test Papers

Chapter 3.1 : Overview of Finance & Acco Chapter 3 : Finance & Accounts SAIL E0 - GFM 2024
Chapter 2.1 : Overview Chapter 2 : Materials Management SAIL E0 - GFM 2024
Chapter 1.1 : Personnel Functions- An ov Chapter 1 : Personnel Management SAIL E0 - GFM 2024
GPOE / GPA Combined 1 Free CBT Mock Test SAIL E0 2024
CBT Mixed Test 1 GPOE/GPA SAIL E0 2024