Question

A bank advertises that you can double the money if you invest it with them for 8 years, what is the rate of interest offered by them

Answer 1

Answer:

a bank advertises that can should be doubled and the money in the interest of a tear what is the interest money offer 96 rupees increase in 8 year is the answer

Answer 2

Answer:

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Let us assume bank follows the process of Simple Interest.

➫ Simple Interest = Principal x Interest Rate x Number of years of deposit / 100

➫ Let us assume Principal amount is Rs.1000 To make it double, interest earned has to be Rs.1000

➫ By using above formula, Number of years of deposit = (100 x 1000) / (1000 x 8) = 12.5 years. Using compound interest.

➫ Most banks calculate interests by compounding them either monthly/ quarterly/half-yearly or annually.

➫ When amount doubles, to calculate the number of years of deposit, we may use 70/interest rate(r) rule.

➫ 70/8 = 8.75% approximately.