Question

At what rate percent on simple interest will a sum of money double itself in 30 years?

Answer 1

Answer:

Rate of interest should be 3 1/3% =3.75 %

Step-by-step explanation:

Here we have to calculate the rate of interest using which we will get same amount as that of  principal amount.

We are calculating simple interest by,

SI=PNR/100

Where ,

SI= Simple Interest

P = Principal Amount

R= Rate Of Interest

N= No Of Years

Given:

N = 30 yr

R = ?

Here we have to take SI=P i.e

Simple Interest = Principal Amount

So lets put all values in formula

SI = PNR/100

P          = P*30*R/100

100P    = P*30R

100P/P = 30R

100       = 30R

100/30  = R

3 1/3      = R

So rate of interest should be 3 (1/3) to get some of money double itself.