A sum of money becomes 8/5 of itself in 5 years at a certain rate of simple intrest. Find the rate of intrest
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Answer:
8/ 5 × 100
= 160 %
Therefore 1.1 × 1.1 × 1.1 × 1.1 × 1.1
= 1.61051
1.1 means an annual increase of 10 % compounded. But 10 % is slightly too much. So, use Interpolation to get to the correct answer. However, I'm not interested in the calculator, so I will settle for 9.9 % compounded annually.
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