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

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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.

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How long will it take an investment to double in value if the interest rate is 10% compounded continuously what is the equivalent annual interest rate?

A 10% interest rate will double your investment in about 7 years (72 ∕ 10 = 7.2); an amount invested at a 12% interest rate will double in about 6 years (72 ∕ 12 = 6). Using the Rule of 72, you can easily determine how long it will take to double your money.

How long will it take an investment to double in value if the interest rate is 7% compounded continuously?

About 8.66 four years. Okay, reach out. If you have any questions or any concerns Thank you.

How long does it take for an investment to double in value if it is invested at 8% compounded monthly?

The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 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 does it take for an investment to double in value if it is invested at compounded?

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.

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

Also, since the interest rate is 9% but compounded monthly, we will divide it by 12, but keep in mind now the answer will be in MONTHS. So, about 92.77 months for the amount to double.

How long will it take for an investment of $2000 to double in value if the interest rate is 6.5% per year compounded continuously?

The natural log of to close the parentheses divided by 0.065 tells us that it will take 10.66 years for the investment to double.

How long does it take for an investment to double in value if it is invested at 7% compounded quarterly?

It takes 9.9 years for money to double if invested at 7% continuous interest.

How long does it take for an investment to double in value if it is invested at 13% compounded monthly compounded continuously?

1 Expert Answer

13 = 5.33 years and ln(2)/. 15 = 4.62 years.

How long will it take to double a $2 000 investment at 10 interest quizlet?

-If the interest rate is 10 percent, it will take 72/10 = 7.2 × 3 = 21.6 years to double—exactly half the time. (You can check that your calculations are approximately correct using the future value formula.

How long does it take for an investment to double in value if it is invested at 11 compounded monthly?

6 years and 11 1/2 months (rounding), which is close to the 7 year estimate.

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

To use the rule, divide 72 by the investment return (the interest rate your money will earn). The answer will tell you the number of years it will take to double your money. For example: If your money is in a savings account earning 3% a year, it will take 24 years to double your money (72 / 3 = 24).

How long will it take for an investment to double its amount if it is invested at an interest rate of 6% compounded annually?

To use the Rule of 72 in order to determine the approximate length of time it will take for your money to double, simply divide 72 by the annual interest rate. For example, if the interest rate earned is 6%, it will take 12 years (72 divided by 6) for your money to double.

How long will it take for a principal to double if money is worth 9% pa compounded continuously?

The Rule of 72 indicates than an investment earning 9% per year compounded annually will double in 8 years.

Does money double every 7 years?

The most basic example of the Rule of 72 is one we can do without a calculator: Given a 10% annual rate of return, how long will it take for your money to double? Take 72 and divide it by 10 and you get 7.2. This means, at a 10% fixed annual rate of return, your money doubles every 7 years.