Answer:
Rate of interest will be 4.42 %
Step-by-step explanation:
We have given time period n = 12 years
Let the principle amount is P
It is given that amount is doubled in 12 years
So amount after 12 years A = 2P
We know that amount is given by
[tex]A=P(1+\frac{r}{100})^n[/tex]
[tex]2P=P(1+0.01r)^{16}[/tex]
[tex](1+0.01r)^{16}=2[/tex]
[tex](1+0.01r)=2^{\frac{1}{16}}[/tex]
[tex](1+0.01r)=1.0442[/tex]
[tex]0.01r=0.0442[/tex]
[tex]r=4.42[/tex] %
So rate of interest will be 4.42 %
