Answer:
The Rate of interest compounded annually is 2.8
Step-by-step explanation:
Given as :
The Principal o investment = P
The Amount of Investment = 2 × P
The time period of investment = 25 years
Le The rate of interest compounded annually = R
So, From compounded method :
Amount = Principal × [tex](1+\frac{Rate}{100})^{Time}[/tex]
Or, 2 P = P × [tex](1+\frac{Rate}{100})^{25}[/tex]
Or, [tex]\frac{2P}{P}[/tex] = [tex](1+\frac{Rate}{100})^{25}[/tex]
Or, 2 = [tex](1+\frac{Rate}{100})^{25}[/tex]
Or, [tex]2^{\frac{1}{25}}[/tex] = 1 + [tex]\frac{Rate}{100}[/tex]
Or, 1.028 = 1 + [tex]\frac{Rate}{100}[/tex]
Or, 1.028 - 1 = [tex]\frac{Rate}{100}[/tex]
Or, .028 = [tex]\frac{Rate}{100}[/tex]
So, Rate = 0.028 × 100 = 2.8
Hence The Rate of interest compounded annually is 2.8 Answer
