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What approximate interest rate would an investor need to earn in order to double the value of an investment you six years?
Wiki User
∙ 7y ago
The sixth root of 2 (which can be calculated as 2 to the power (1/6)) is 1.1225. If you subtract one, you get 0.1225, so 12.25%.
Wiki User
∙ 7y ago
Wiki User
∙ 7y ago12.25%, approx.
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What rate of interest compounded annually is required to double an investment in 21 years?
(2)1/21 = 1.03356 (rounded)That's an annual interest of 3.356 percent.Let's try it:(1.03356)21 = 2.00009 on my calculator, which is pretty close.
How long will money in savings take to double at 5 percent interest compounded annually?
Use the "rule of 72"...simply put, using compound interest you take the number 72 and divide it by the interest rate. Thus, at 5% the time to double is 14.4 years. This formula can be used for calculating a "double" for any interest rate using the same mathematical procedure.
How many years will it take for 4000 to double at a simple interest?
The same time that it will take for any other amount to double. However, for the actual calculations you need to know the interest rate.
How long will it take to double your money at 8 percent interest rate and continuous compounding?
Nine years at 8%
What interest rate would be necessary to double a 100 investment in 11 years?
Suppose the interest rate is r% then 2 = (1+r/100)11 so that ln(2) = 11*ln(1+r/100) Then ln(1+r/100) = ln(2) /11 so 1 +r/100 = exp[ln(2)/11] so r/100 = exp[ln(2)/11] - 1 r = 100*{exp[ln(2)/11] - 1} = 6.504 % approx.
What approximate interest rate would an investor need to earn in order to double the value of an investment in six years?
Simple interest: 100/6 ie 16.67%
How long did it take to have full return of investment?
It depends on what you are investing in. If you're not a professional investor it should take about 5 years to double your investment in stocks.
What is the rule 72?
Rule of 72 is a method that you can use to estimate the time your investments will double.I will give you the formulas and examples of how to apply them1) 72/interest=years2)72/years=interestExample 1: An investor is earning an interest of 10%. How many years will it take for her investments to double.Solution: 72/10= answerExample 2: An investor wants to double her money in 9 years, at what rate of interest must she earn for her investment to double in 9 years?Solution: 72/9=answer
What interest rate is required for an investment with continuously compounded interest to double in 8 years?
It is approx 8.66%
What interest rate would an investor need to earn in order to double the value in 6 years?
12%
Why should a consumer know and understand the rule of 72?
Rule of seventy two is used to ascertain the period by which an investment would grow by 100%. 72 divided by rate of interest would provide the approximate period by which the investment would become double. As an example, if the rate of interest is 6% per month, the investment would be doubled in ( 72/6) 12 months. Rule of 72 thus is an important tool to know the investment horizon.
Do investments double every 10 years?
Sometimes. It depends on the interest rate. The rule of 72 will tell you when your investment will double.Example(usage): you invest x dollars at 9% interest per year. 72/9 = 8It will take 8 years for your investment to reach 2x at 9% annual interest.The interest needed to double an investment in 10 years is:72/x=107.2% interestSo if your investment had an annual interest rate of 7.2% it would double in 10 years.
How can i double an investment every ten weeks?
If you invest in any assets which yields 7.2% per week, then your investment will double. Rule of 72 states "The rule number (e.g., 72) is divided by the interest percentage per period to obtain the approximate number of periods (usually years) required for doubling." <><><> An investment that doubles in value every 10 weeks is generally a VERY risky investment. Safe investments will not normally have a rate of return of more than 500% a year.
What exactly is the finance rule of 72?
The finance rule of 72 basically is a way to find out how long it will take for someone to double their money, given a certain interest rate. E.g. if you had an interest rate of 9% a year on an investment, it will take 72/9 = 8 years to double your initial investment.
How many years will it take for an investment to double if the interest rate is 8 percent per year compounded annually?
11 years
Is ING a good place to put a long term investment?
ING is a good place to invest money especially if you want to double your interest.
Advantages and disadvantages of turnkey contracting?
turnkey projects are expensive since the donor will double the interest charge to make more profit on their investment.
