A sum of money dobles itself in 10 years. Find the rate of interest
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A sum of money dobles itself in 10 years. Find the rate of interest
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time, t = 10 yrs
As it get doubled so Amount, A = 2x
Hence interest= A - P = 2x - x = x
Let r be the rate of interest
Now, As Interest = ( P r t )/100
so, x = ( x r 10 )/100
or, 1 = 10 r / 100
so, r = 10 %
Hence rate of interest is 10 % per annum.
Thanks.