Answer:
The interest rate should be 11.6%.
Step-by-step explanation:
Let us assume that at r% rate of interest compounded annually is required to triple an investment of $P in 10 years.
So, using the formula of compound interest, we can write
[tex]3P = P(1 + \frac{r}{100})^{10}[/tex]
⇒ [tex]3 = (1 + \frac{r}{100})^{10}[/tex]
⇒ [tex](1 + \frac{r}{100}) = 1.116[/tex]
⇒ [tex]\frac{r}{100} = 0.116[/tex]
⇒ r = 11.6 %
Therefore, the interest rate should be 11.6%. (Answer)
