Question:
Approximately how many years are needed to double a $100 investment when interest rates are 5.75 percent per year?
Rule of 72:
Rule of 72 is a rule of thumb used to approximate the number of years it takes to double the value of an asset or investment. It is calculated by dividing the number 72 by the percentage growth rate of the asset value (i.e., 6 if the growth rate is 6%).
Answer and Explanation:1
Become a Study.com member to unlock this answer!Createyouraccount
View this answer
Applying the rule of 72, it takes about 72 / 5.75 = 12.52 years to double the investment.
We can compare the approximate number to the actual number....
See full answer below.
Become a member and unlock all StudyAnswers
Start today. Try it now
Create an account
Ask a question
Our experts can answer your tough homework and study questions.
Search Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Try it now
Future Value Definition Formula & Examples
from
Chapter 5/ Lesson 16
89K
Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.
Related to this Question
- Approximately how many years are needed to double a $100 investment when interest rates are 7 percent per year?
- Approximately how many years are needed to double a $100 investment when interest rates are 7.50 percent per year?
- Approximately how many years are needed to double a $100 investment when interest rates are 6.50 percent per year?
- Approximately how many years are needed to double a $100 investment when interest rates are 7.25 percent per year? (Round your answer to 2 decimal places.)
- Approximately, how many years does it take to double a $2000 investment when interest rates are 6% per year?
- Approximately how many years are needed to double a $100 investment when interest rates are 4.50% per year? (Round your answer to 2 decimal places.)
- Approximately how many years are needed to double a $100 investment when interest rates are 9.25% per year? (Round the answer to 2 decimal places.)
- Approximately how many years are needed to double a $100 investment when interest rates are 5.50% per year? (Round your answer to 2 decimal places.)
- Approximately how many years are needed to double a $100 investment when the interest rate is 8.50% per year? (Round the answer to 2 decimal places.)
- Approximately how many years does it take to double a $600 investment when interest rates are 6% per year? a) 0.08 years b) 8 years c) 8.33 years d) 12 years
- How many years are required for an investment to double in value if it is appreciating at the rate of 12% compounded? Continuously?
- How many years are required for an investment to double in value if it is appreciating at the rate of 33% compounded continuously?
- How many years are required for an investment to double in value if it is appreciating at the rate of 11% compounded continuously?
- What annual rate of interest compounded annually is required to double an investment in 10 years?
- If you invest $10,000 today, how many years will it take for you to double your $, if the annual interest rate is 6%?
- Say you have invested $50,000 at a yearly interest rate of 12.5% compounded annually. How many years will it take for your investment to double in size?
- How long will it take an investment to double in value if the interest rate is 9% compounded annually?
- How long will it take for an investment of $1,000 to double in value if the interest rate is 7.5% per year, compounded continuously?
- How long it takes to double investment of $10,000 compounding continuously with annual interest rate of 5.35%?
- How long does it take to double an investment of $14,000 if the investment pays only simple interest at the rate of 12% per year?
- How long does it take to double an investment of $7,000, if the investment pays only simple interest at the rate of 10% per year?
- If you want an investment to double in 6 years, what interest rate must it earn?
- If you deposit $10,000 in an investment that you 6% annually, how many years would it take for your investment to double in value?
- Approximately, how many years does it take to double a $1,000 investment when interest rates are 4% per year? Present Value Payment Future Value Rate Number of periods
- At what interest rate compounded continuously must money be invested to double in 3.5 years?
- If $17,000 is invested at 10% per year, in approximately how many years will the investment double? A. 14.6 years B. 11.0 years C. 8.4 years D. 7.3 years
- How high is the constant yearly interest rate if an investment doubles in value within 20 years?
- a) To the closest year, how long will it take a $200 investment to double if it earns 7 percent interest? b) How long will it take if it earns 18 percent?
- How many years would it take your money to double at 10% interest compounded yearly?
- You are currently investing your money in a bank account that has a nominal annual rate of 10 percent. How many years will it take for you to double your money?
- How long will it take an investment to double in value if the interest rate is 9% compounded continuously?
- How long will it take an investment to double in value if the interest rate is 2% compounded continuously?
- You are interested in determining how long it will take an investment of $10,000,000 to double in value. The current interest rate is 7% compounded annually. How many years will it take $10,000,000 to
- To the closest year, how long will it take a $200 investment to double if it earns 7% interest? How long will it take if the investment earns 18 percent?
- How many years will it take an investment to quadruple if the interest rate is 8.75% compounded continuously?
- How long will it take to double $1,000 if invested at 12.25% using annual compounding? a. 7.2 years b. 6.5 years c. 6 years d. 5 years e. none of the given ones
- How long will it take to double $500 if it is invested in an account earning 100% interest, compounded annually?
- How long will it take to double $500 if it is invested in an account earning 10% interest, compounded annually?
- How long will it take to double $500 if it is invested in an account earning 20% interest, compounded annually?
- How long will it take to double $500 if it is invested in an account earning 6% interest, compounded annually?
- Approximately how many years does it take to double a $500 investment when interest rates are 4% per year? a. 0.06 years b. 6 years c. 6.94 years d. 18 years
- What is the interest rate necessary for an investment to quadruple after 17 years?
- If you earn 10% interest, how many years will it take to double your money?
- How long will it take to double your savings if you earn 6.8 percent interest, compounded annually?
- How many years will it take an investment to triple itself if the interest rate is 8%, compounded annually? A. 13.27 years B. 14.27 years C. 15 years D. 15.42 years E. None of above
- What interest rate (compounded continuously) is earned by an investment that doubles in 20 years?
- What rate of interest compounded annually is required to triple an investment in 8 years?
- It will take _____ years to double your money at a 11% rate of interest compounded annually.
- How long (in years) will it take $400 to double if it earns the following rates? Compounding occurs once a year. Round each answer to two decimal places. a) 7% b) 11% c) 16% d) 100%
- How long will it take for a $2,000 investment to double in value? Assume that the interest rate is 8 percent.
- How many years does it take for an investment of $1,259.11 to grow to $5,271.82 if the annual periodic interest rate is 5.62%?
- Suppose you deposit money in an investment account that pays 7% annual interest compounded continuously. About how many years will it take for your initial deposit to double?
- With interest at 9% compounded annually, what is the fewest number of years (integer-valued) required for money to double in magnitude ?
- How long would it take an investment to double under each of the following conditions? a. Interest is 3.3% compounded monthly. Blank years and Blank months. b. Interest is 7% compounded continuously. Blank years.
- At 10.38% compounded annually, how long (how many years) will it take $631 to double?
- Compounded annually, at what rate of interest will a sum of money double itself in 6 years?
- How many years it will take you to double your money if you can earn 6% each year, given that compounding is quarterly?
- Determine the length of time required before a $1,000,000 deposit will double if the interest rate is 10%. Round to the nearest year.
- How long (in years and months) will it take for an investment to double at 11%?
- How long would it take to double your principal at an annual interest rate of 7%?
- How long does it take for an investment to double in value if it is invested at 10.99% interest compounded continuously?
- At what rate of simple interest will a sum of money double itself in 8 years?
- A sum of money invested at a certain rate of interest doubles itself in 12 years. In how many years will the money triple itself at the same rate?
- How long will it take for money to double if it is invested at an interest rate of 11% compounded quarterly?
- How long will it take for money to double if it is invested at an interest rate of 9.5% compounded quarterly?
- If you earn an annual interest rate of 9 percent, how many years will it take to triple your money?
- How long will it take $200 to double, if compounding occurs once a year at 7%?
- How long will it take $300 to double if it earns the following rates? Compounding occurs once a year. a. 6% b. 13% c. 21% d. 100%
- How long would it take to double your principal at an annual interest rate of 7% compounded continuously?
- If your investment doubles in value in 12 years, what approximate annual rate of return would you have earned?
- Jack deposited $10,000, which is compounded monthly at an annual interest rate of 6.90% for t years. How many years will it take the initial investment to double?
- How long will it take an investment of $100 double its value at 15 percent compound interest?
- You have been offered an investment that will double your money in 10 years. What rate of return is you being offered?
- At a growth (interest) rate of 10 percent annually, how long will it take for a sum to double? To triple? Time needed to double...years Time needed to triple...years
- If you earn an annual interest rate of 10.2%, how many years will it take to triple your money?
- If you earn an annual interest rate of 9.8%, how many years will it take to triple your money?
- How long does it take to double an investment at compound interest of 4.2%?
- How many years will it take for an investment to grow by a factor of k if the interest rate is r% compounded (a) annually, (b) semiannually, (c) quarterly, (d) monthly, (e) weekly, (f) daily, and (g)
- What interest rate (compounded continuously) is earned by an investment that triples in 7 years?
- Calculate how many years it will take an investment to triple if the interest rate is 8% compounded annually.
- How long will it take an investment to double in value if the interest rate is 11% compounded continuously? (round your answer to two decimal places.)
- What is the interest rate necessary for an investment to quadruple after 6 years of continuous compound interest?
- What is the interest rate necessary for an investment to quadruple after 20 years of continuous compound interest?
- If you presently have $6,000 invested at a rate of 15%, how many years will it take for you investment to triple?
- If the annual interest rate is 6%, how many years will it take for $1.00 to be worth $8.00?
- How long does it take for an investment to double in value if it is invested at 14% compounded monthly?
- How long does it take for an investment to double in value if it is invested at 8.9% compounded monthly?
- How long will it take $800 to double if it earns the following rates? Compounding occurs once a year. (Round each answer to two decimal places) a.4%. b.13%. c.20%. d.100%.
- What is the number of years it takes for an investment to reach $200, starting from $50 at an interest rate of 10%?
- How long does it take for an investment to double in value if it is invested at 20% compounded continuously?
- How long does it take for an amount of money, p, to double itself if its invested at 7% interest compounded 4 times a year? Round answer to 2 decimal places.
- If you can double your money in 22 years, what is the implied annual rate of interest, given that compounded semi-annually?
- If you presently have $7,000 invested at a rate of 8%, how many years will it take for your investment to quadruple with monthly compounding? a. 10.2 years b. 9.1 years c. 22.5 years d. The number o
- In five years we need $125,000. How much do we deposit today if the annual interest rate is 8%, compounded annually?
- In five years, you need $125,000. How much do you deposit today if the annual interest rate is 8%, compounded annually?
- How long does it take for an investment to double in value if it is invested at 8% per annum a) compounded monthly? b) compounded continuously?
- Fill in the blank. It will take \rule{1in}{.2mm} years to double your money at a 5% rate of interest compounded annually.
- How long it will take an initial deposit of $10,000 to double if the annual interest rate on the deposit is a. 10%? b. 7%?
- If you want to double your deposit in 10 years, what would be the interest rate (APR) if we assume
Explore our homework questions and answers library
Ask a Question
To ask a site support question,click here
