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. (e0·5 = 1·648).
Solution
Let P denote the principal at any time t.
From given condition,
Separating the variables and integrating,
...(1)
Now
When
will become Rs. 1648 after 10 years.
From given condition,
Separating the variables and integrating,
...(1)Now
When
will become Rs. 1648 after 10 years.
