Question -
Answer -
Let p, t, and r representthe principal, time, and rate of interest respectively.
It is given that the principal increasescontinuously at the rate of r% per year.
Integratingboth sides, we get:
It is given that when t =0, p = 100.
⇒ 100 = ek … (2)
Now, if t = 10, then p =2 × 100 = 200.
Therefore,equation (1) becomes:
Hence,the value of r is 6.93%.