How many years will it take a sum of money to double if the interest rate is 7\% compounded quarterly?

How many years will it take a sum of money to double if the interest rate is 7\% compounded quarterly?

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 a certain amount to double itself if money is worth 12\% simple interest?

six years
A borrower who pays 12\% interest on their credit card (or any other form of loan that is charging compound interest) will double the amount they owe in six years.

How many years would it take your money to double A at interest compounded yearly?

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?

For quick estimations of how long it takes to double the money on an investment, some may choose to use the rule of 72. The rule of 72 is found by dividing 72 by the rate of interest expressed as a whole number. For example, a rate of 6\% would be estimated by dividing 72 by 6 which would result in 12 years.

In what time will a sum of money double itself at 8 percent per annum?

Answer: 10 years. Formula : So, a sum of money double itself at 8\% p.a in 10 years.

Why does the 72 rule work?

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself.

How long does it take for an investment to double in value if it is invested at 3\% compounded continuously?

Originally Answered: How long will it take to double your money at 3 percent annual interest compounded monthly? A= P (1+r/100)^n, where A= amount, P = Principal r= Rate of interest in \% per period and n = Number of periods. It would take 277.60 months or 23.13 years for the Principal to double.

What is the sum of money that can double itself?

Sum doubling itself means interest is 100 percent. Since simple interest is involved, just divide 100 by the rate of interest. You get the answer. How long it takes a sum of money to double itself at 12\% simple interest rate?

How long does it take to Double Your Money?

Simply divide  72 by the presumed growth rate to get a rough idea on how long it will take for your money to double. For example, an investment growing at 7.2\% a year would double in 10 years. At 8\% growth, it would take 9 years to double your investment. However, this “rule of thumb” is not 100\% correct.

Is 72/25 a good interest rate to invest $1000?

Again, it’s 72/Y. 25\% is a very generous interest rate. 72/25 = 2.88 years. However, there is a good chance that they won’t actually credit the interest until the third year is completed, and your money should more than double. Try it. Invest $1000.00.

How fast will your investments double in value?

The first is the “rule of 72” – a simple rule of thumb to help you determine how fast your investments will double in value at certain rates of return. Simply divide 72 by the presumed growth rate to get a rough idea on how long it will take for your money to double.