Multiple choice

In how many minimum number of years will a sum of money be more than double at 15% compound interest rate?

  1. 5 years

  2. 3 years

  3. 2 years

  4. 1 year

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Using the compound interest formula A = P(1 + r/n)^nt, we want A > 2P. With r = 0.15, we solve (1.15)^n > 2. For n = 5, (1.15)^5 is approximately 2.011, which is the first integer year where the sum exceeds double the original amount.

AI explanation

Using the compound interest formula, we need the smallest integer n such that (1.15)^n is greater than 2. Testing values, (1.15)^4 is approximately 1.749, which is less than 2. Checking the next year, (1.15)^5 is approximately 2.011, which is greater than 2. The minimum number of years required is 5 years.

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