How long will it take an investment to double in value if the interest rate is 8% compounded continuously?
The result is the number of years, approximately, it’ll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
How long will it take an investment to double in value if the interest rate is 9% compounded continuously what is the equivalent annual interest rate?
The rule states that an investment or a cost will double when: [Investment Rate per year as a percent] x [Number of Years] = 72. The Rule of 72 indicates than an investment earning 9% per year compounded annually will double in 8 years.
How long will it take an investment to double in value if the interest rate is 6 compounded monthly?
The annual percentage yield on 6% compounded monthly would be 6.168%. Using 6.168% in the doubling time formula would return the same result of 11.58 years.
How long will it take an investment to double in value if the interest rate is 5% compounded continuously Round your answer to two decimal places 13.86 correct your answer is correct yr B what is the equivalent annual interest rate Round your answer?
Doubling Time: How long will it take money to double if it is invested at 5% compounded continuously? It will take approximately 13.86 years for the initial investment to double.
How long will it take an investment to double in value using the Rule of 72 if its earn 2% 5% 10%?
How the Rule of 72 Works. For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72/10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double ((1.107.3 = 2). The Rule of 72 is reasonably accurate for low rates of return.
How can I double my money in one day?
Day trading is one of the quickest ways to double your money from home. The day trading process involves purchasing and selling financial assets, such as stocks or forex, for a short time span in a day. The approach helps you to profit from small market movements during intraday trading.
How long will it take to double an investment compounded continuously at a rate of 7?
With an estimated annual return of 7%, you’d divide 72 by 7 to see that your investment will double every 10.29 years. In this equation, “T” is the time for the investment to double, “ln” is the natural log function, and “r” is the compounded interest rate.
How long will it take for an investment to triple if interest is compounded continuously at 7%?
It will take 15.7 years for the investment to triple.
How quickly will money double if it is invested at an annual interest rate of 6% compounded continuously?
It can only be used for annual compounding. As an example, an investment that has a 6% annual rate of return will double in 12 years. An investment with an 8% annual rate of return will thus double in nine years.
Can I double my money in 5 years?
Let’s apply Thumb rule in a reverse way, if you wish to double your money say in 5 years, then you will have to invest money at the rate of 72/5 = 14.40% p.a. to achieve your target. This means you have to invest money in those financial products that will give you a return at 14.40% per annum.
How long will it take for an investment to double at 3% compounded monthly?
Divide each side by log 1.0025. 277.6053016 ≈ 12t Use a calculator to find log 2 divided by log 1.0025. t ≈ 23.1 Finish solving the problem by dividing each side by 12 and round your final answer. At 3% annual interest it will take approximately 23.1 years to double your money.
How many years will it take $500 to grow to $750 with an annual interest rate of 6 percent?
award: 10 out of 10 points MC Qu. 80 Solving for Time How many years will it take $500 to grow to $75… Solving for Time How many years will it take $500 to grow to $750 with an annual interest rate of 6 percent? 6.96 years 6.03 years 15.00 years 12.00 years PV = -500, I = 6, PMT = 0, FV = 750, CPT N = 6.96 23.
At what interest rate compounded continuously must money be invested to double?
A Rate Of 11% Is Required For Money To Double In 7 Years.
How long will it take $500 to double at a simple interest rate of 5%?
72 / 5 = 14.4 years.
How long does it take for an investment to double in value if it is invested at 2% compounded quarterly?
At 2% compounded quarterly, the investment doubles in about years.