. Find the time in which a sum of money gets doubled at the interest rate of 8% per annum of interest.
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In cse it is simple rate application, pl assume the sum as RS 100.00. You want it to be doubled means u want interest Rs 100 then it will be doubled.
Apply formula of interest
Interest=PxRxT÷100
100=100x8xT÷100
T=12.5 years
In case of annually compounded interest let us assume that Rs 100 to become 200 . Alply formula
A=P(1+R/100)^T
200=100(1+8/100)^T
200=100(27/25)^T
2=27/25^T
(1.08)^8=(1.08)^T
T=9
Thus a sum will be doubled in 12.5 years at simple interest rate and in 9 years at compound interest rate of 8% PA
You can verify the answer of compound rate as under
A=P(1+R/100)^T
200=100(1+8/100)^9
200=100(27/25)^9
2=27/25^9
2=(1.08)^9
2=2
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