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