Everyone knows that the government schemes and banks can not give you such return. It is a useful rule of thumb for estimating the doubling of an investment.
Yes blogging can be viable way for you to double your money in 5 years.
How to double your money in 5 years. The post stock market crash 2020. Lending money another quickest way to double money is to third party money lending at higher rate of interest. If you invest money at a 10 return you will double your money every 7 2 years.
Also read simple principal of investment invest 30. Required rate of return to double money in 5 years 14 4 the investments which can double money in 5 years therefore if you want to double your money in only 5 years you have to search the investment instruments which can give annual return at least 14 4. Since you are looking for the investment option that may double your money in 5 years then with the rule of 72 it works out to be 72 5 14.
How to double your money in 5 years. 72 10 7 2 if you invest at a 9 return you will double your money every 8 years. For example if you wanted to double an investment in 5 years divide 72 by 5 to learn that you ll need to earn 14 4 interest annually on your investment for 5 years.
In this option you can double your money in 4 5 years. How the rule works to use the rule of 72 divide the number 72 by an investment s expected annual return. The result is the number of years it will take roughly to double your money.
14 4 5 72. Now that you know how much returns you may require. That means you will be required at least 14 average annual returns to double your invested amount.
Appeared first on the motley fool canada. The rule states that the amount of time required to double your money can be estimated by dividing 72 by your rate of return. Continue reading show full articles without continue reading button for 0 hours.
The rule of 72 is a simplified version of the more involved compound interest calculation. 1 for example. If you want to make it a goal to double your retirement money within five years find out what your account is earning on average.
The result is the number of years it will take to double your money. Just divide 72 by your expected annual rate. 8 one on one teaching online this is probably a none conventional way of doubling your money it s low risk and to be honest you can probably double your money very quickly.