At what rate percent will the C.I. on a sum of money become four fold in 2 years ?

Asked by rickykumar00001 | 2nd Jun, 2015, 08:29: PM

Expert Answer:

L e t space P space b e space t h e space p r i n c i p a l space s u m space o f space m o n e y. W e space k n o w space t h a t space t h e space a m o u n t space o f space m o n e y space c o m p o u n d e d space a f t e r space apostrophe n apostrophe space y e a r s space w i t h space apostrophe r % apostrophe space i n t e r e s t space i s A equals P open parentheses 1 plus r over 100 close parentheses to the power of n G i v e n space t h a t space t h e space a m o u n t space i s space f o u r space t i m e s space t h e space p r i n c i p a l space s u m T h u s comma space w e space h a v e comma 4 P equals P open parentheses 1 plus r over 100 close parentheses to the power of n rightwards double arrow 4 equals open parentheses 1 plus r over 100 close parentheses squared rightwards double arrow 2 equals 1 plus r over 100 rightwards double arrow r over 100 equals 2 minus 1 rightwards double arrow r over 100 equals 1 rightwards double arrow r equals 100 %

Answered by Vimala Ramamurthy | 3rd Jun, 2015, 08:05: AM