ABC Bank under its simple deposit scheme pays interest on the amount deposited. The Bank says, that if a depositer does not withdraw any portion of the deposit or interest before five years, the accumulated amount at the end of 8 years will be double the amount deposited at the beginning of the term. What is the rate of interest per annum ??
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Interest
Source: Beat The GMAT — Problem Solving |
Interest = PNR/100
For amount to be doubled, Interest should be equal to Principle invested.
Therefore, NR=100
R = 100/8 = 12.5%
For amount to be doubled, Interest should be equal to Principle invested.
Therefore, NR=100
R = 100/8 = 12.5%
