A certain sum is invested at 26% p.a, interest compounded annually. In how many years (approx) will it double?
Answer & explanation
Correct answer: option 2
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
2P = P[ 1 + \(\frac{26}{100}\) ]t
2 = [ \(\frac{63}{50}\) ]t
2 = ( 1.26 )t
On solving , t = 2.99 years
= 3 years ( Approx )