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At what rate percent per annum of compound interest, will a sum of money become four times of itself in two years ?

a) 100%
b) 75%
c) 50%
d) 20%

Answer: a
Explanation:
$$\eqalign{ & {\text{Principal}}\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{Amount}} \cr & \,\,\,\,\,\,\,\,\,{\text{1}}\,\,\,\,\,\,\,\,\,\,\,\, \to \,\,\,\,\,\,\,\,\,\,\,\,{\text{4}} \cr & 4 = 1{\left( {1 + \frac{r}{{100}}} \right)^2} \cr & 4 = {\left( {1 + \frac{r}{{100}}} \right)^2} \cr & r = 100\% \cr} $$

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