Question

find the rate at which a sum of money will double itself in 2 years if the interest is compounded annually.

Answer 1

I hope my answer helps you

Answer 2

Answer:

41.4214% ( approx )

Step-by-step explanation:

Let the amount of money = x

Time = 2 years,

Let r be the annual rate of interest,

Thus, the amount of money after 2 years,

$A=x(1+r)^2$

According to the question,

$x(1+r)^2=2x$

$(1+r)^2=2$

$(1+r)=\sqrt{2}\implies r = \sqrt{2}-1=1.41421356237-1=0.41421356237\approx 0.414214=41.4214\%$