Question

solve with steps!!

Q. Find the rate at which a sum of money will double itself in 3 years, if the interest is compounded annually.

Answer 1

$\bold{ \underline{answer}}$

Let The Rate Of Interest Be R% Per Annum

Now Let Principal = P

Now Amount = 2*P = 2P

Time = 3

Now

A = P(1+R/100)n

2P = P(1+R/100)3

2 = (1+R/100)3

Cube Root Of 2 = 1+R/100

Or

R = Cube Root Of 2-1 * 100

R = 1.26-1 * 100

R = 26%(Approximately)