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CDS 2025 · PYQ · Compound Interest · easy

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?

  1. A.2
  2. B.3
  3. C.4✓ Correct
  4. D.5

Explanation

We need (1.2)^n > 2. (1.2)² = 1.44, (1.2)³ = 1.728, (1.2)⁴ = 2.0736 > 2. So n = 4 years.
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