How long will it take for a $1000 investment to double in size when invested at the rate of 8% per year?
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.
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. Exact Answer: Rule of 72 Estimate: (We're assuming the interest is annually compounded, by the way.)
Answer and Explanation:
Since it is compounded semi-annually, the interest rate would be 8% / 2 = 4%. For semi-annual, the number of years would be 17.7 / 2 = 8.8. Hence, it will take 8.8 years to double the investment.
So, if the interest rate is 6%, you would divide 72 by 6 to get 12. This means that the investment will take about 12 years to double with a 6% fixed annual interest rate. This calculator flips the 72 rule and shows what interest rate you would need to double your investment in a set number of years.
Expert-Verified Answer
Using the formula for continuous compounding, we find out that it would take approximately 9.24 years for a $1000 investment at a 7.5% interest rate compounded continuously to double in value.
Answer and Explanation:
The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.
Let's say your interest rate is 8%. 72 ∕ 8 = 9, so it will take about 9 years to double your money.
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.
Divide both sides of the equation by 2ln(1.04). Use a calculator to simplify the left-hand side of the equation. Rounding to the nearest year, we get that t = 9, so it will take approximately 9 years for our investment to double in value in this particular account.
⇒T=1008=12.5 years. Was this answer helpful?
How long will it take for you to get $100000.00 if you invest $5000.00 in an account giving you 9.7% interest compounded continuously?
t = ln(100,000/5,000)/0.097 ≈ 12.35 years Using the formula for continuous compounding interest, it will take approximately 12.35 years for a $5,000 investment to grow to $100,000 at an interest rate of 9.7% compounded continuously.
Let's look at how much you could make by depositing $1,000 into accounts with various ranges: After one year with a regular account at 0.43%: $1,004.30. After one year with a high-yield account at 4.50%: $1,045.00. After one year with a high-yield account at 5.00%: $1,050.00.
Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.
The rule of 8-4-3 for mutual funds states that if you invest Rs 30,000 monthly into an SIP with a return of 12% per annum, then your portfolio will add Rs 50 lacs in the first 8 years, Rs 50 lacs in the next 4 years to become Rs 1 cr in total value and adds further Rs 50 lacs in the next 3 yrs to reach Rs 1.5 cr.
One of the easiest ways to double $1,000 is to invest it in a 401(k) and get the employer match. For example, if your employer matches your contributions dollar for dollar, you'll get a $1,000 match on your $1,000 contribution.
$13,860.98. If you invest $4,500 in a bank certificate of deposit that pays you 3.75% compounded continuously, how much will you have in 30 months? There are 2 steps to solve this one.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 2% | $1,000 | $1,218.99 |
| 3% | $1,000 | $1,343.92 |
| 4% | $1,000 | $1,480.24 |
| 5% | $1,000 | $1,628.89 |
Simple Annual Interest
If a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually, the FV of the $1,000 equals $1,000 × [1 + (0.10 x 5)], or $1,500.
Expert-Verified Answer
Final answer: To reach $7,500 with an 8% interest rate, it would take approximately 9.7 years. Using a calculator, we find that time is approximately 9.7 years.
One awesome thing that you can take advantage of is compound interest. It may sound like an intimidating term, but it really isn't once you know what it means. Here's a little secret: compound interest is a millionaire's best friend. It's really free money.
What is the rule of 7 investing?
1 At 10%, you could double your initial investment every seven years (72 divided by 10). In a less-risky investment such as bonds, which have averaged a return of about 5% to 6% over the same period, you could expect to double your money in about 12 years (72 divided by 6).
Final answer:
It will take approximately 15.27 years to increase the $2,200 investment to $10,000 at an annual interest rate of 6.5%.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Guj. Themis Bio. | 404.35 |
| 2. | Refex Industries | 160.55 |
| 3. | Tata Elxsi | 7085.75 |
| 4. | Tanla Platforms | 967.85 |
Do you know the Rule of 72? It's an easy way to calculate just how long it's going to take for your money to double. Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double.
A common rule of thumb, the rule of 72, states that you can know how long it'll take for your investment to double by dividing 72 by the rate of return. A 10% annual return means your money should double every 7.2 years. This can be a powerful investment insight, a real-life version of the “grain of rice” folktale.
