Question

Determine the interest rate capitalized once in a year which can triple any amount in 6 years

Answer 1

ANSWER

interest rate = 20%

EXPLANATION

let P = x, A = 3x, t = 6 and R = ?

$A\text{ = P}\ast(1+R)^t$

$\begin{gathered} 3x=x(1+R)^6 \\ 3=(1+R)^6 \\ 1+R=3^{\frac{1}{6}} \\ 1+R\text{ = 1.2} \\ R\text{ = 1.2 - 1} \\ R\text{ = 0.2} \\ R\text{ = 20\%} \end{gathered}$