At what rate percent will Rs1000 double in 10years at compound interest ?

Question

I want a solution of a question related to compound interest ?

Answer 1

the underlying compound interest formula that you want to use here is

A = P(1 + r/n)^nt

if you solve that for the value of the rate ("r") it becomes

r = n((A/P)^(1/nt) - 1)

for this scenario that means taking

r = 1((2000/1000)^(1/10) - 1))

r = 2^(1/10) - 1

r = 1.07177 - 1

r = 0.07177

meaning that the required compound interest rate in this scenario is 7.18%

Answer 2

Any amount will double in 10 years with annual compound interest at the rate specified by this equation:

(1+i)¹⁰ = 2

10 log(1+i) = log 2

log(1+i) = .1log 2 =.030103

1+i = 10^.030103 = 1.071773 => i = .071773 or a little more than 7%