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How long will it take for money to double in a savings account that is compounded continuously?
Wiki User
∙ 11y ago
Five years
Wiki User
∙ 11y ago
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What interest rate is required for an investment with continuously compounded interest to double in 8 years?
It is approx 8.66%
Is it true that it will take money in savings 14.2 years to double at 5 percent interest compounded annually?
Yes, that's an accurate number.
Is it true if you leave your bank account alone for 5 years it will double?
No. It will not. Let us consider the case in India. The normal interest rate on a savings account is 3.5% per annum. Let's say you have Rs. 10,000/- in your account on Jan 1st 2010, and leave it as such for 5 years, on December 31st 2015 you will have approximately Rs. 12,000/- There are various types of compounding of interest rates offered by banks and assuming the interest is compounded every year, you will have Rs. 11876.86/- at the end of 5 years. Even if the amount is compounded every day, the amount might not be the double of what you had in your account at the beginning of 5 years.
If a Bank account has a nominal annual rate of 7.23 percent compounded annually how many years will it take to double your money?
10 years
Jon deposits 1000 in an account that pays 8 percent interest compounded annually How long will it take to double your money?
1). My money will never double. Let's talk about Jon's money instead. 2). It doesn't matter how much he deposits into the account. The time required for it to double is the same in any case. 3). At 8% interest compounded annually, the money is very very very nearly ... but not quite ... doubled at the end of 9 years. At the end of the 9th year, the original 1,000 has grown to 1,999.0046. If the same rate of growth were operating continuously, then technically, it would take another 2days 8hours 38minutes to hit 2,000. But it's not growing continuously; interest is only being paid once a year. So if Jon insists on waiting for literally double or better, then he has to wait until the end of the 10th year, and he'll collect 2,158.92 .
Does Interest Compounded semi-annually double every year?
No.
How can I double a 100?
The current average savings account rate is 1.50% APY so if you choose to invest $100 this way, it would take you 47 years before you double.
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.
What is the rule of 72 in savings and investments?
The rule of 72 is a quick and very accurate method of determining how long it takes for money to double at a specified rate of interest, compounded annually. For example, using the rule of 72 with a compounded interest rate of 6% it would take 12 years to double your money (72 divided by 6). The precise amount of time it takes to double your money at 6% based on the actual computation of compounded interest is 11.9 years. The rule of 72 works very well unless the rate of interest exceeds 20% at which point the error rate starts to deviate substantially from the actual answer. The rule of 72 can also be used to figure out what rate of interest you need to double your money in a specified number of years. For example, if you want to double your money in 5 years, divide 72 by 5 and the interest rate needed is 14.4%.
How can banks afford to pay interest n their customers savings account deposits?
Because they're loaning the money in those deposits at double or more the interest rates that they're paying the depositors.
Six thousand dollars is deposited into a fund at an annual rate of 13 percent find the time required for the investment to double if the interest is compounded continuously?
the equation for compound interest is Pe^(rt) the principal you want in the end is twice that of the original 12,000 plugging in and solving you get 12,000=6000e^(.13t) t = 5.33 years
How long does an investment earning 9 percent take to double in value?
8.0432 years (rounded) if compounded annually.
