Problema Solution
at what rate of simple intrest will the sum of money double itself in 6 years?
Answer provided by our tutors
P = the principal
r = the annual rate
t = 6 years
A = the future value
A = P(1 + r*t)
since the money will double itself in 6 years we have A = 2*P thus
2P = P(1 + r*t)
P(1 + r*6) = 2P divde both sides by P
1 + 6r = 2
by solving we find
r = 0.167 or 16.7%
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the simple interest is 16.7%.