At what rate of interest a sum of money doubles itself in 10 years in simple interest
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First, you should know the equation of simple compound interest.
FV = PV(1 + i*n)
in which FV = future value, PV = present value, i = interest rate in one period, n = number of period
In this case, the period is 10 years. After 10 years, FV = 2PV
=> 2PV = PV(1 + i*n)
<=> 2 = 1+ i*n
<=> i*n = 1
<=> 10i = 1 <=> i = 0.1 = 10%
So, the interest rate here is 10%.
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