At what rate of interest is an amount doubled in two years, when compounded annually?
Select the correct option:
A) 41.7%
B) 41.4%
C) 49.4%
D) 81.4%
E) 31.4%
Let the rate of interest be r. The amount gets doubled in two years =&gt; P(1 + r/100)2 = 2p =&gt; 1 + r/100 = √2 =&gt; r/100 = √2 - 1 = 0.414 =&gt; r = 100(0.414) = 41.4%.Answer: 41.4%
<result>B</result>
At what rate of interest is an amount doubled in two years, when compounded annually?