Answer:
The rate of interest is 12.5%
Step-by-step explanation:
Let the principal be P
We are given that Jay wants his money to double in eight years.
So, Amount = 2P
Simple interest = Amount - Principal = 2P-P = P
Time taken to double the money is 8 years
So,[tex]SI = \frac{P \times T \times R}{100}\\P=\frac{P \times 8 \times R}{100}\\100=8 \times R\\\frac{100}{8}=R\\12.5 =R[/tex]
Hence The rate of interest is 12.5%
