2007-03-13 15:53:14 · 4 answers · asked by crombieqtpy15 3 in Business & Finance ➔ Investing
You can apply the "rule of 72" for an approximation. This means that with a return of 8% it takes about 72/8 = 9 years, while with 7% it takes a little more than 10 years
The exact calculation would be the following: For 8% you have to solve (1+4%)^x = 2, where x is 6 months. You can rewrite to
x= ln(2)/ln(1.04) = 17.7 or almost 9 years
for 7 % it is ln(2) / ln(1.035) = 20.1 or just over 10 years
check: 1.04 ^ 18 =2.03 and 1.035 ^ 20 = 1.99
2007-03-13 19:27:10 · answer #1 · answered by Cheanea 3 · 2⤊ 0⤋
Typically an investment will double about every 7 years.
2007-03-13 15:58:17 · answer #2 · answered by JesJ 4 · 0⤊ 1⤋
Go to http://finishrich.com
You can use the " latte calculator" , just put in the amount you will be investing, how often, and at what rate you think you'll be getting......
oh yeah! ...and the number of years you think you'll be doing it.
2007-03-13 16:50:19 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
8.835493843 years to double your money at 8% semianually
10.07439584 years to double your money at 7% semianually
2007-03-13 20:54:29 · answer #4 · answered by speedy266 2 · 1⤊ 0⤋