Question

Parikshit invests Rs. 1546 in BNP bank at a certain rate of compound interest per annum. At the end of 8 years, he finds that his money has doubled. What approximately is the rate of interest BNP bank paid him?
please answer with solution ​

Answer 1

Answer:

9.051 %

Step-by-step explanation:

A = P(1 + r/n)^(nt)

A = 2×P

P = 1546

n = 1

t = 8

2×1546= 1546(1 + r)^8 ⇔ (1 + r)^8 = 2 ⇒ r = $\sqrt[8]{2}$ - 1 ⇒ r ≈ 0.0905077 ≈ 9.051 %