Answer :
Answer:r=5.78 %
Step-by-step explanation:
Given
time t=12 years
Investment doubles in 12 years when compounded monthly with r rate of interest
[tex]A=P\left ( 1+\frac{r}{n}\right )^{nt}[/tex]
where A=amount
P=principal
r=rate of interest
n=no of times interest is compounded per unit time t
t=times
here A=2P
thus [tex]2=\left ( 1+\frac{r}{12}\right )^{12\times 12}[/tex]
[tex]2^{0.006944}=1+\frac{r}{12}[/tex]
[tex]1.004824=1+\frac{r}{12}[/tex]
r=0.05789
r=5.789 %