Question
In a bank, principal increases continuously at the rate of r% per year. Find the value of r if Rs. 100 double itself in 10 years.
Solution
Let P denote the principal at any time t and r% per annum be the interest rate..
From the given condition,
Separating the variables and integrating, we get,
...(1)
Now
when t = 0
Now, Rs. 100 become Rs.200 in 10 years.
From the given condition,
Separating the variables and integrating, we get,
...(1)Now
when t = 0 Now, Rs. 100 become Rs.200 in 10 years.
