How long will it take for an investment to triple if interest is compounded continuously at 6?
hence to the nearest year, it will it take 18 years for an investment to triple, if it is continuously compounded at 6% per year.
How long will it take money to triple at an APR of compounded annually?
It will take about 12 years to triple an amount of money earning 6.5% compounded annually.
How long will it take your money to triple at a rate of 9%?
For example, with a 9% rate of return, the simple calculation returns a time to double of eight years. If you use the logarithmic formula, the answer is 8.04 years—a negligible difference. In contrast, if you have a 2% rate of return, your Rule of 72 calculation returns a time to double of 36 years.
How long to the nearest year will it take an investment to double if it is continuously compounded at 13% per year?
1 Expert Answer
The easiest way to solve it is to take the ln(2) and divide it by the interest rate. For this problem, assuming that your rates are annual, this formula gives us ln(2)/. 13 = 5.33 years and ln(2)/. 15 = 4.62 years.
What rate of interest compounded annually is required to triple an investment in 15 years?
At a rate of interest of 3.86% compounded annually investment will be tripled.
What is the rule of 115?
Rule of 115: If 115 is divided by an interest rate, the result is the approximate number of years needed to triple an investment. For example, at a 1% rate of return, an investment will triple in approximately 115 years; at a 10% rate of return it will take only 11.5 years, etc.
How long will it take you to triple an amount of $500 if you invest it at a rate of 6% compounded annually?
It will approximately take 18 years 10 months.
How long will it take money to triple?
The Rule of 115 It’s as simple as dividing your interest rate by 115. The quotient is the amount of time it will take you to triple your money. For example, if your money earns an 8 percent interest rate, it will triple in 14 years and 5 months (115 divided by 8 equals 14.4).
How long will it take money to if it is invested at compounded?
The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.