Quick Answer: What Rate Of Interest Compounded Annually Is Required To Triple An Investment In 5 Years?

What rate of interest compounded is required to an investment in years?

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..

At what rate of interest compounded annually will an investment triple in 10 years?

11.61%Where the symbol ^ means to the power of. So the annual compounded interest rate to triple \$1 today to \$3 in 10 years is 11.61%.

Can I double my money in 5 years?

To get your money doubled in five years, the CAGR needed will be nearly 15 per cent (more preciously 14.87 per cent). However, there is no guaranteed-return product that offers such a high rate of return and the only possible way to achieve this is by taking risk.

How can I double my money fast?

Speculative ways to double your money may include option investing, buying on margin, or using penny stocks. The best way to double your money is to take advantage of retirement and tax-advantaged accounts offered by employers, notably 401(k)s.

Does money double every 7 years?

If you want to double your money, the rule of 72 shows you how to do so in about seven years without taking on too much risk. … If you invest money at a 10% return, you will double your money every 7.2 years. (72/10 = 7.2) If you invest at a 9% return, you will double your money every 8 years.

How long will it take for an investment to triple if it is compounded continuously at 15 %?

A=3P according to your question since you are trying to triple the investment. r=15%(0.15) and t=? The exponential function in the initial formula means we would have to use natural logarithms to solve for the answer. t= 7.32 years (7 years 117 days).

How long in years will it take your money to triple at an annual percentage rate of 6% compounded annually?

= 72/ rate of interest = 72/6 = 12 years. It takes 19 years to triple your money.

What rate of interest compounded annually is required to triple an investment in 18 years?

3.86%1 Answer. At a rate of interest of 3.86% compounded annually investment will be tripled.

What rate of interest compounded continuously is required to double an investment in 3 years?

25.99 %The annual rate of interest needed to double the principal in 3 years is 25.99 %.

What rate of interest compounded continuously is required to double an investment in 5 years?

14.4%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: 14.4 × 5 = 72. The Rule of 72 is a simplified version of the more involved compound interest calculation.

How long will it take money to triple calculator?

The Rule of 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).

What rate compounded semi annually is required for an investment to double in 8 years?

The Rule of 72 indicates than an investment earning 9% per year compounded annually will double in 8 years.

What rate of interest compounded continuously is required to double an investment in 7 years?

10%A 10% interest rate will double your investment in about 7 years (72 ∕ 10 = 7.2); an amount invested at a 12% interest rate will double in about 6 years (72 ∕ 12 = 6). Using the Rule of 72, you can easily determine how long it will take to double your money.