How long in years will it take a $300 investment to be worth $800 if it is continuously compounded at 12% per year?
Thus, it will take approximately 8.17 years.
Therefore, it will take approximately 7.54 years for the investment to be worth $900.
The Basics
Let's say your interest rate is 8%. 72 ∕ 8 = 9, so it will take about 9 years to double your money. 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).
Answer and Explanation:
The future value of the investment is $12,968.71. It is the accumulated value of investing $5,000 for 10 years at a rate of 10% compound interest.
The $3,500 investment would have become $4,200 in about 3.05 years, or just over 3 years and 2 weeks. What Are Radicals?
HenceTime=x×100x×12=8Years4months.
Therefore, it would take approximately 5.78 years for the principal to double at a rate of 12% compounded monthly.
The total amount of $15,000 at 15% compounded annually for 5 years will be $30,170.36 so option (B) is correct.
If you invest $10,000 today at 10% interest, how much will you have in 10 years? Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.
An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.
How much will $100,000 invested be in 20 years?
How much will $100k be worth in 20 years? If you invest $100,000 at an annual interest rate of 6%, at the end of 20 years, your initial investment will amount to a total of $320,714, putting your interest earned over the two decades at $220,714.
In this case, P = $300, r = 5%, n = 4 (since interest is compounded quarterly), and t = 20. Therefore, the investment will be worth $1,016.09 after 20 years.
So if you invest $25,000 in the stock market and average a 10% annual return, your investment will grow in value to $436,235 over 30 years.
How much you need to live off interest depends entirely on your expenses and where the balance is invested. A million dollars in a retirement account might produce enough income for the median American to get by, but you'd need larger returns to cover a six-figure lifestyle. Consider your lifestyle goals, too.
Answer is r=100/n. Therefore r=100/8=12.5%. So if I invest in a scheme which gives me 12.5% simple interest I will be able to double my money in 8 years. Originally Answered: In how many years will a sum of money double itself at 8% per annum?
So time required is 10 years. Was this answer helpful?
P = R s 5000 A = 2 P = 2 × 5000 = R s 10 , 000 S I = A - P = 10 , 000 - 5000 = R s 5000 T = S I × 100 P × R = 5000 × 100 5000 × 20 = 5 y e a r s.
Let's say your initial investment is $100,000—meaning that's how much money you are able to invest right now—and your goal is to grow your portfolio to $1 million. Assuming long-term market returns stay more or less the same, the Rule of 72 tells us that you should be able to double your money every 7.2 years.
An investment of Rs 30,000 every month with annual returns of 12 per cent, it takes eight years to reach your first Rs 50 lakh. But it takes just half the time, or just four years, to earn your second Rs 50 lakh, and for the third Rs 50 lakh, you need just three years.
The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. In this case, 18 years.
What is the future value of $1000 after 5 years at 8% per year?
The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24. It is computed as follows: F u t u r e V a l u e = 1 , 000 ∗ ( 1 + i ) n.
So, C.I = 26,620 - 20,000 = ₹ 6,620.
So, the time required is 20 years.
At a 4% interest rate, it will take about 11.67 years for $400 to grow to $1,000. At an 8% interest rate, it will take about 5.93 years, and at a 16% interest rate, it will take about 3.19 years. Here, the final amount is $1,000, the principal is $400, and you have three different interest rates: 4%, 8%, and 16%.
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. Dividing 72 by the annual rate of return gives investors a rough estimate of how many years it will take for the initial investment to duplicate itself.
