How long will it take to for your money to double Given: You have invested $1...

Question

Question

How long will it take to for your money to double

Given:

You have invested $1 today at 6% per year compounded yearly

Solve:

Approximately (to the nearest year) how many years will take for your money to double to $2 if invested at 6% per year compounded yearly?

business finance

Answer 1

Answer #1

Using the Rule of 72 the answer would be =72/6 =12 years,

The more accurate answer is calculated using the NPER function as follows:

=NPER(rate,pmt,pv,fv)

=NPER(6%,0,-1,2)

=11.90 or 12 years

Answer 2

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