Question

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

Answer 1

The rate of interest is 12.5%

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 = (P * T * R)/(100)\\P=(P * 8 * R)/(100)\\100=8 * R\\(100)/(8)=R\\12.5 =R`

Hence The rate of interest is 12.5%