Business Studies, asked by sathibiswas6878, 1 year ago

If a certain sum of money at si doubles itself in 5 yrs then what is the rate?

Answers

Answered by Anonymous
0

for an amount at simple interest rate r over period t)

2P = P(1 + r*t)    (we want to double our money)

2 = 1 + r*t    (the amount of money is irrelevant. We can divide it out.)

1 = r*t    (subtract 1)

1/t = r    (divide by t to find r)

1/5 = r    (use the given value for t)

1/5*100% = 20% = r

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