What rate of interest compounded annually is required to dou

What rate of interest compounded annually is required to double an investment in 23 years? The rate of interest required is (Round to two donimnlul

Solution

A=P(1+r)^t

A=accumulated amount=2P ,P=initial amount , r =rate of interest , t =time period =23 years

2P=P(1+r)²³

(1+r)²³=2

1+r=2^1/23

1+r =1.0306

r =0.0306

r =3.06%

the rate of interest required is 3.06%