Accountancy, asked by Bhaweshsingh3456, 1 year ago

At what rate of interest a sum of money doubles itself in 10 years in simple interest

Answers

Answered by sujal1247
4

Answer:

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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