Question: At What Nominal Rate Compounded Continuously Must Money Be Invested To Double In 8 Years?

What interest rate compounded continuously is earned by an investment that doubles in 8 years?

The Rule of 72 indicates than an investment earning 9% per year compounded annually will double in 8 years..

How long will it take money to triple itself if invested at 10% compounded every three months?

It will approximately take 18 years 10 months. Now we should use logarithmic functions. So the answer is approximately 18 years 10 months.

What interest rate do you need to double your money in 5 years?

Alternatively you can calculate what interest rate you need to double your investment within a certain time period. For example if you wanted to double an investment in 5 years, divide 72 by 5 to learn that you’ll need to earn 14.4% interest annually on your investment for 5 years: 14.4 × 5 = 72.

What’s the safest investment with the highest return?

Overview: Best low-risk investments in 2020High-yield savings accounts. While not technically an investment, savings accounts offer a modest return on your money. … Savings bonds. … Certificates of deposit. … Money market funds. … Treasury bills, notes, bonds and TIPS. … Corporate bonds. … Dividend-paying stocks. … Preferred stock.

How many years are required for an investment to double in value if it is appreciating at the rate of 8% compounded continuously?

9 yearsIf an investment scheme promises an 8% annual compounded rate of return, it will take approximately (72 / 8) = 9 years to double the invested money.

Can I double my money in 5 years?

To get your money doubled in five years, the CAGR needed will be nearly 15 per cent (more preciously 14.87 per cent). However, there is no guaranteed-return product that offers such a high rate of return and the only possible way to achieve this is by taking risk.

How long will it take money to double itself if invested at 5% compounded annually?

14.4 yearsOr, if your money is earning a 5 percent interest rate, you’ll double it in 14.4 years (72 divided by 5 equals 14.4).

How long will it take for an investment to triple if it is compounded continuously at 15 %?

A=3P according to your question since you are trying to triple the investment. r=15%(0.15) and t=? The exponential function in the initial formula means we would have to use natural logarithms to solve for the answer. t= 7.32 years (7 years 117 days).

How long does it take for an investment to double in value if it is invested at 2% compounded quarterly?

About YearsAt 2% Compounded Quarterly, The Investment Doubles In About Years. (Round To Two Decimal Places As Needed.)

How long will it take for a principal to double if money is worth 12% compounded monthly?

Answer. Answer: I believe you are asking if we have an annual rate of 12%, compounded monthly, how long to double? X = 69.66 or at 70 months.

What interest rate compounded continuously is earned by an investment that triples in 10 years?

Question: What Interest Rate (compounded Continuously) Is Earned By An Investment That Triples In 10 Years? A Rate Of % Is Eamed By An Investment That Triples In 10 Years. (Do Not Round Until The Final Answer.

How long will it take for an investment to triple if interest is compounded continuously at 7%?

15.7 yearsIt will take 15.7 years for the investment to triple.

How long will it take $500 to double at a simple interest rate of 5%?

It’ll take 24 years for your investment to double.

How many years would it take your money to double A at 10% interest compounded yearly?

7.2 yearsThe rule states that the amount of time required to double your money can be estimated by dividing 72 by your rate of return. 1 For example: If you invest money at a 10% return, you will double your money every 7.2 years. (72/10 = 7.2)

At what percentage rate of simple interest per annum will an amount of money double in 10 years?

Answer. it means at the rate of 10% per annum sum will double itself in 10 years .

Can you trust financial advisors?

Individual investors naturally rely on the expertise and involvement of financial advisors. … If an advisor has a history of non-compliance with regulations such as The Employee Retirement Income Security Act (ERISA), it would be hard to trust that the advisor will make your finances his or her priority.

Which investment gives highest return?

Here is a look at the top 10 investment avenues Indians look at while saving for their financial goals.Debt mutual funds. … National Pension System (NPS) … Public Provident Fund (PPF) … Bank fixed deposit (FD) … Senior Citizens’ Saving Scheme (SCSS) … Pradhan Mantri Vaya Vandana Yojana (PMVVY) … Real Estate. … Gold.More items…•