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Interest

by silverflamein » Wed Oct 26, 2011 7:30 am
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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by GmatKiss » Wed Oct 26, 2011 8:09 am
r = 25 ??
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by shankar.ashwin » Wed Oct 26, 2011 9:47 am
Interest = PNR/100

For amount to be doubled, Interest should be equal to Principle invested.

Therefore, NR=100

R = 100/8 = 12.5%
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by krishnakumar.ks » Wed Oct 26, 2011 10:35 am
r=12.5%. Thanks for that good explanation Shankar.
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