find the rate at which a sum of money will double itself in 2 years, if the interest is compounded annually.
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Answered by
22
Let the principal = P
∴ Amount = 2P (It doubles itself)
Using the compound interest formula
A = P(1 + R/100)∧n
2P = P(1 + R/100)∧2 (Divide both sides by P)
2 = (1 + R/100)∧2 (Find the square root of both sides)
1.4142 = 1 + R/100 (Subtract 1 from both sides)
R/100 = 0.4142 (Multiply both sides by 100
R = 41.42
∴ The rate = 41.42 percent
∴ Amount = 2P (It doubles itself)
Using the compound interest formula
A = P(1 + R/100)∧n
2P = P(1 + R/100)∧2 (Divide both sides by P)
2 = (1 + R/100)∧2 (Find the square root of both sides)
1.4142 = 1 + R/100 (Subtract 1 from both sides)
R/100 = 0.4142 (Multiply both sides by 100
R = 41.42
∴ The rate = 41.42 percent
Answered by
4
Solution:-
Let the rate of interest = r % and Principal = P
So, the Amount will be 2P
Time = 2 years
A = P (1 + r/100)
Let the rate of interest = r % and Principal = P
So, the Amount will be 2P
Time = 2 years
A = P (1 + r/100)
Golda:
Sorry wrongly posted. A = P (1 + r/100)n
2P = P (1 + r/100)^2 = 2P/P = (1 + r/100)^2 = 2 = (1 + r/100)^2 = root2 = 1 + r/100 = (1.4142 - 1) = r/100 = 0.4142 = r/100 = r = 41. 42 % Answer.
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