Question

. Find the time in which a sum of money gets doubled at the interest rate of 8% per annum of interest.​

Answer 1

Answer:

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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