Find the rate at which a sum of money will double itself in $2$ years, if the interest is compounded annually.

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Solution

Amount $= P (1 + \frac{r}{n})^{n t}$
where $P =$ Principal Income
$r =$ Interest Rate
$n =$ no of times interest is compounded per year
$t =$ Time
From the given conditions ,
$2 P = P (1 + r)^{2} ⟹ r = \sqrt{2} - 1 = 0.414 = 41.4 %$

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Find the rate at which a sum of money will double itself in 2 years, if the interest is compounded annually.

Amount =P(1+rn)nt where P=Principal Income r=Interest Rate n=no of times interest is compounded per year t=TimeFrom the given conditions ,2P=P(1+r)2⟹r=√2−1=0.414=41.4%

Find the rate at which a sum of money will double itself in $2$ years, if the interest is compounded annually.

Amount $= P (1 + \frac{r}{n})^{n t}$
where $P =$ Principal Income
$r =$ Interest Rate
$n =$ no of times interest is compounded per year
$t =$ Time
From the given conditions ,
$2 P = P (1 + r)^{2} ⟹ r = \sqrt{2} - 1 = 0.414 = 41.4 %$