TIME FOR A LUMP SUM TO DOUBLE: If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?

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Tod ThielLv2

28 Sep 2019

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Related questions

If you deposit money today in an account that pays 4.5% annual interest compounded annually, how long will it take to double your money? More challenging: Solve the same problem, only assume interest compounds quarterly instead of annually

Suppose you have decided to start saving money to take a long-awaited family vacation in Northern Brazil, which you want to take 5 years from today. You estimate the amount you will have to pay at that time will be $10,000. The savings account you established for your trip offers 5% per annum interest compounded quarterly.

How much will you have to deposit each year if your first deposit is made 1 year from today and the final deposit is made 1 year before you depart?

(Hint: Consider effective annual rate in your calculation)

greyswan843

Future value - You have $50 to invest. If you can earn 10% interest, about how

long does it take for your $50 investment to double? Suppose that the interest

rate is just half that, at 5%. At half the interest rate, does it take twice as long to

double your money? Why or why not? How long does it take?

jadebear393

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