How do i determine how long it would take me to double my investment at .05%on $2,000.00?

Answer 1

Well, there is something called "compound interest' which basically means if you don't "spend" the interest that is being earned, and you leave it with the initial investment, then you are actually investing more than the first $2,000 after the first interest payment is earned....but for an easier calculation.... if you earn 5% every year on $2,000, it will take 20 years to double your investment. You figure this out like this.... there are 20 nickles in one dollar (or ten dimes).... that means a nickle is 5% of one dollar. So if you earned one nickle every year, it would take you 20 years to earn one dollar.... and since you started with just one dollar, you will have doubled your investment. There is an old saying called the rule of 7 and eleven....with compound interest, if you invest $x dollars at 7%, it will take 11 years to double your investment. If you invest $x dollars at 11%, it will take 7 years to double your investment. Get a finance book and look up the "time value of money". You will have to look up a rate of return in interest tables...or get a good finance calculator. But you have to understand the concept before you use the calculator or else you will never know if your answer is "reasonable". Sorry, but that's about all I remember from finance class about 30 years ago. As I suggested, look up time value of money. It will make you want to earn interest and not pay interest anymore! Start young. You will be glad you did.

Answer 2

Look up something called Rule of 72; divide 72 by the interest rate. The result is the number of years it will take to double your investment.

Answer 3

Use the rule of 72 as follows:

Learn the Rule of 72

Step 1 of 2: How long does it take my money to double?

This step teaches you how to determine the number of years it will take for your investment or debt to double in value.

Divide the number 72 by the percentage rate you are paying on your debt, or earning on your investment. Here are two examples...

You borrowed $1,000 from your friend, who is charging you 6% interest. 72 divided by 6 is 12. That makes 12 the number of years it would take for your debt to your friend to double to $2,000 if you did not make any payments.

You have a savings account with $500 deposited in it. It earns 4% interest from the bank. 72 divided by 4 is 18. It will take 18 years for your $500 to double to $1,000 if you don't make any deposits.

Remember: 72 divided by the Interest Percentage is the number of years it takes to double

Step 2 of 2: How many times will my money double?

This step teaches you how important it is for your money to double as many times as possible, and for your debts to double as few times as possible.

Determine how many years you will keep your investment before cashing it in. Divide that by the number of years it will take to double each time, the number you figured out in step one.

Now look at what happens to your money each time it doubles...

$1 ... $2 ... $4 ... $8 ... $16 ... $32 ... $64 ... $128 ...

You can see that it makes a big difference how many times your money doubles. If you can make it double only a few more times by making just slightly better investments, you can end up with many times more money at retirement, or whenever you cash in your investment.

Think about how fast your debts can double with high interest rates, such as those charged on most credit card accounts.

You have learned the basics you need to use the rule of 72.

Answer 4

I assume you mean 5% or .05, not .05%. I also assume you are compounding annually.

After year 1: 2100
After year 2: 2205
After year 3: 2315.25
After year 4: 2431.01
After year 5: 2552.56
After year 6: 2680.19
After year 7: 2814.20
After year 8: 2954.91
After year 9: 3102.65
After year 10: 3257.78
After year 11: 3420.67
After year 12: 3591.71
After year 13: 3771.29
After year 14: 3959.86
After year 15: 4157.85

Answer 5

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Answer 6

a whole lot longer than you'll be alive.