Question

An amount of money double itself in 10 years. what is the rate of interest ?

Answer 1

Let R be the interest rate.

Let 100 be the Principal P.

100(1+ R÷100) ^10 = 200

{(100+R)÷100}^10 =2

(100+R)/100= 2^(1/10)

(100 + R)/100 = 1.07177346253629

100 + R =107.177346253629

R = 7.177346253629

Why not put similar cases in a general formula?

At what rate R will an amount become “n”times, when the period is N years?

Just solve the formula:

R = {100 × n^(1/N)} - 100

I.e. 100 x Nth root of number of times less 100

Answer 2

Hello hi your answer



Thanks