Determine how many years it takes to double your money at different rates of return. If your money sits in a standard savings account and earns just 0 09 the average interest rate for savings accounts nationwide it would take 800 years to double.
For example an investment growing at 7 2 a year would double in 10 years.
How long will it take money to double. 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. For example if the expected annual return of a bank certificate of deposit cd is 2 35 and you have 1 000 to. Make consistent 7 contribution each year.
If you invest money at a 10 return you will double your money every 7 2 years. If you expect a 10 annual return for instance divide 72. In order to avoid tax i would have to use vehicles creating restrictions until i was 59 5 years old.
If you invest a sum of money at 0 5 interest per month how long will it take you to double your investment. 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. The result is the number of years it will take roughly to double your money.
72 10 7 2 if you invest at a 9 return you will double your money every. Per the rule if you divide 72 by an annual growth or interest rate you ll get the number of years it will take to double your money. The rule states that the amount of time required to double your money can be estimated by dividing 72 by your rate of return.
Simply divide 72 by the presumed growth rate to get a rough idea on how long it will take for your money to double. At the end of each year look at your 401k balance and pledge to contribute 7 percent of that amount the following year. T 72 r 72 0 5 144 months since r is a monthly rate the answer is in months rather than years.
If you do that and earn an average 7 percent return each year you can double your starting 60 000 balance in less than six years. Double money calculator. I wanted a better.
Annual rate of return. Double your money calculator how long does it take. To double my money i would have to wait twelve years at a 5 6 interest rate.
Number years to double money. At 8 growth it would take 9 years to double your investment. 1 for example.