Question

Jay wants his money to double in eight years. What interest rate does he need to earn? *

Answer 1

Answer:

The rate of interest is 12.5%

Step-by-step explanation:

Let the principal be P

We are given that Jay wants his money to double in eight years.

So, Amount = 2P

Simple interest = Amount - Principal = 2P-P = P

Time taken to double the money is 8 years

So,$SI = \frac{P \times T \times R}{100}\\P=\frac{P \times 8 \times R}{100}\\100=8 \times R\\\frac{100}{8}=R\\12.5 =R$

Hence The rate of interest is 12.5%