Copyright
Question:
How long would it take $1,000 to double if it were invested in a bank that pays 6% per year?
The Rule of 72:
The Rule of 72 is a technique used broadly by analysts and bankers to quickly determine how long it takes for a certain lump sum of money to double over a given time period. It can also determine the rate of interest required to double your money. The rule states that an investment or a cost will double when:
(Investment Rate per year as a percent) * (Number of Years) = 72
Answer and Explanation:1
Become a Study.com member to unlock this answer!Createyouraccount
View this answer
The answer is: 12 years.
We can use the rule of 72 to answer this question. The rule states that an investment or a cost will double when:
(Investm...
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
Interest Rate | Definition, History & Examples
from
Chapter 6/ Lesson 12
7.6K
Understand the interest rate definition. Learn more about interest rate meaning and its significance in formulating policy in an economy with examples.
Related to this Question
- How long (in years and months) will it take for an investment to double at 11%?
- 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 10% interest, compounded annually?
- 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 6% interest, compounded annually?
- How many years would it take $50 to triple if it was invested in a bank that pays 8% per year? a. 16.24 b. 12.75 c. 11.58 d. 18.85 e. 14.27
- 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?
- 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 will it take money to double if it is invested at 15% compounded monthly?
- How long does it take to double an investment at compound interest of 4.2%?
- 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 many years would it take $50 to triple if it was invested in a bank that pays 8% per year?
- How long it takes to double investment of $10,000 compounding continuously with annual interest rate of 5.35%?
- How long will it take for money to double if invested at 6% compounded quarterly?
- How long will it take an investment to double, compounded continuously at 8%?
- 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?
- Approximately, how many years does it take to double a $2000 investment when interest rates are 6% per year?
- How long will it take $200 to double, if compounding occurs once a year at 7%?
- 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?
- 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 long will it take to double your savings if you earn 6.8 percent interest, compounded annually?
- How long does it take for an investment to double in value if it is invested at 5.55% compounded quarterly?
- How long does it take for an investment at 1.99% compounded daily to double in value?
- How long does it take for an investment at 2.2% compounded daily to double in value?
- How long will it take for money to double if it is invested at an interest rate of 9.5% compounded quarterly?
- How long will it take for money to double if it is invested at an interest rate of 11% compounded quarterly?
- How long does it take for an investment to double in value if it is invested at 20% compounded continuously?
- 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 long does it take to double your money at a 9% interest rate?
- a. How long will it take money to double if it is invested at 7% compounded quarterly? b. How long will it take money to double if it is invested at 8.6 % compounded continuously?
- How long will it take to double your money if the rate of interest is 4%, 7%, 12% ?
- 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?
- If you invest $10,000 today, how many years will it take for you to double your $, if the annual interest rate is 6%?
- How long will it take an investment of $100 double its value at 15 percent compound interest?
- How long does it take for an investment to double in value if it is invested at 20% compounded monthly question mark compounded continuously?
- How long does it take for an investment to double in value if it is invested at 10.99% interest compounded continuously?
- How long would it take to double your money if you invest it at 4% simple interest? Show your complete solution.
- How long does it take for an investment at 3.3% compounded quarterly to double in value?
- How long would it take to double your money if you invest it at 4% compound interest? Show your complete solution.
- How long would it take for a sum of money to double itself at 12% simple interest rate?
- How long will it take money to double if it is invested at the following rates? (a) 7.8% compounded weekly (b) 9.1% compounded weekly
- 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 long does it take to quadruple an investment at compound interest of 7.25%?
- How long does it take for an interest rate of 8.5 to double?
- 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?
- 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 for $500 to double at a 5% interest rate?
- 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 deposit money into your account that pays 6.5% interest, how long will it take for you to double your money?
- How long does it take to triple an investment at compound interest of 6.2%?
- 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?
- How long will it take money to triple if it is invested at 6.65% compounded monthly?
- 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?
- 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 long will it take an investment to triple if compounded continuously at 7.2%?
- How long will it take for an investment to double in value if it earns 5.4% compounded continuously?
- At 7.1 percent interest, how long does it take to double your money?
- If you presently have $6,000 invested at a rate of 15%, how many years will it take for you investment to triple?
- To the closest year, how long will it take $600 to double if it is deposited and earns 9%?
- How long would it take to double your principal at an annual interest rate of 7%?
- 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.
- How many years it will take you to double your money if you can earn 6% each year, given that compounding is quarterly?
- How long will it take for an investment to triple if interest is compounded continuously at 5%?
- 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 does it take for an investment to triple in value if it is invested at 6% compounded monthly?
- How long does it take for an investment to double in value if it is invested at 15% compounded quarterly? Compounded continuously?
- How long does it take for an investment to double in value if it is invested at 66% compounded quarterly? Compounded continuously?
- How long will it take for a $2,000 investment to double in value? Assume that the interest rate is 8 percent.
- How long does it take for an investment at 2.25% compounded annually to triple in value?
- How long does it take for an account containing $8000 to be worth $15,000 if the money is invested at 9% compounded monthly?
- How long will it take $200 to double if it is deposited and earns the following rates? Round your answers to the closest year. a) 8% _____ year(s) b)10.9% _____ year(s) c)20.2% _____ year(s) d)100
- How long will it take your $10,000 to double in value if it earns 5% annually?
- If you earn 5% per year on your bank account, how long will it take to double your money? A. 5 years B. 10.4 years C. not enough information D. 14.2 years
- Find how long it takes $1,000 to double if it is invested at 8% interest compounded semiannually.
- How long will it take for an investment of $5,000 to triple if the investment earns interest at a rate of 8% per year compounded daily?
- If you earn 10% interest, how many years will it take to double your money?
- You invest $1000 in an account paying 6% compounded monthly. How long will it take to double your investment?
- How long does it take for an investment at 4.75% compounded daily to triple in value?
- How long will it take for an investment of $5,000 to triple if the investment earns interest at a rate of 8% per year compounded monthly?
- How long will it take $50,000, placed in a savings account, at 10% interest, to grow into $75,000? A. 6.25 years B. 5.25 years C. 4.25 years D. 3.25 years
- How many years would it take your money to double at 10% interest compounded yearly?
- How long will it take an investment to triple if compounded continuously at 6.25%?
- How long will it take for an investment to triple if it is compounded continuously at 5%?
- How long will it take for an investment to triple if it is compounded continuously at 9%?
- How long will it take for an investment to triple if it is compounded continuously at 12%?
- How long will it take $10,000 to grow to $25,000 if it is invested at 8% compounded quarterly?
- Approximately how long would it take an investment that is compounded annualy to triple at an interest rate of 6%?
- How long will it take for an investment of 4000 to earn 600 in interest if it is invested at 6.8% compounded continuously?
- How long will it take for an investment of $5,000 to triple if the investment earns interest at a rate of 8% per year compounded quarterly?
- 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.
- How long will it take for an investment to triple, if interest is compounded continuously at 4.45%?
- How long will it take for an investment to triple if interest is compounded continuously at 3.33%?
- How long will it take for an investment to triple if it earns 3.4% interest compounded monthly?
- 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
- 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?
- How long does it take to triple your money, earning 7% interest compounded continuously?
Explore our homework questions and answers library
Ask a Question
To ask a site support question,click here
