If a sum triples in 15 years at simple rate of interest then the rate of interest per annum will be
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Always start with the difference between the starting and final amounts (the “Interest Amount”).
The Simple Interest formula is:—
Interest Amount = (Principal x Rate x Time) / 100
Difference between your Principal and the final amount (basic arithmetic):—
P = Principal = $100
Final amount = $100 x 3 = $300
Therefore I = Interest Amount = $300 - $100 = $200
You know Time (T) is 16 years and need to find the Interest Rate (R).
Apply the formula I = PRT/100 and solve for R
Rearrange formula to R = (I x 100) / PT
R = (200 x 100) / (100 x 16)
R = 12.5% is your annual interest rate desired
The Simple Interest formula is:—
Interest Amount = (Principal x Rate x Time) / 100
Difference between your Principal and the final amount (basic arithmetic):—
P = Principal = $100
Final amount = $100 x 3 = $300
Therefore I = Interest Amount = $300 - $100 = $200
You know Time (T) is 16 years and need to find the Interest Rate (R).
Apply the formula I = PRT/100 and solve for R
Rearrange formula to R = (I x 100) / PT
R = (200 x 100) / (100 x 16)
R = 12.5% is your annual interest rate desired
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