Question

find the rate at which a sum of money will double itself in 2 years, if the interest is compounded annually.
please help me I want full explanation.​

Answer 1

Answer:

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Step-by-step explanation:

ANSWER

If an amount 'P' is invested at an interest of r% p.a. for n years then the amount received after 'n' years is given by

⇒A=P(1+

100

r

)

n

here, let say the principal be Rs. P then amount is given to be Rs. 2P and n=2 years.

∴2p=p(1+

100

r

)

2

⇒2=(1+

100

r

)

2

⇒1+

100

r

=

2

⇒

100

r

=1.414−1 (∵

2

≅1.41.)

⇒

100

r

=0.414

⇒r=41.4%

Hence, the answer is 41.4%.