What Rate Of Interest Compounded Annually Is Required To Double An Investment?

How long will it take an investment to double in value if the interest rate is 8% compounded continuously?

9 yearsHow to Calculate the Rule of 72.

If an investment scheme promises an 8% annual compounded rate of return, it will take approximately (72 / 8) = 9 years to double the invested money..

At what interest rate compounded continuously must money be invested to double in 6 years?

about 12 percentYou can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.

How long does it take for an investment to double in value if it is invested at 10% interest compounded continuously?

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 long will it take $500 to double at a simple interest rate of 5%?

It’ll take 24 years for your investment to double.

How long will it take for an investment to double at 3% per year?

Take 72 divided by the investment return (or interest rate your money will earn), and the answer tells you the number of years it will take to double your money. For example: If your money is in a savings account earning 3 percent a year, it will take 24 years to double your money (72 / 3 = 24).

What rate of interest compounded continuously is required to double an investment in 5 years?

14.4%For example if you wanted to double an investment in 5 years, divide 72 by 5 to learn that you’ll need to earn 14.4% interest annually on your investment for 5 years: 14.4 × 5 = 72. The Rule of 72 is a simplified version of the more involved compound interest calculation.

What rate of interest compounded continuously is required to double an investment in 7 years?

The rule states that the amount of time required to double your money can be estimated by dividing 72 by your rate of return. 1 For example: If you invest money at a 10% return, you will double your money every 7.2 years. (72/10 = 7.2)

At what rate of interest compounded annually will an investment triple in 10 years?

11.61%Where the symbol ^ means to the power of. So the annual compounded interest rate to triple $1 today to $3 in 10 years is 11.61%.

How long will it take money to triple calculator?

The Rule of 115 The quotient is the amount of time it will take you to triple your money. For example, if your money earns an 8 percent interest rate, it will triple in 14 years and 5 months (115 divided by 8 equals 14.4).

What rate of interest compounded annually is required to triple an investment?

3.86%1 Answer. At a rate of interest of 3.86% compounded annually investment will be tripled.