## What interest rate do you need to double your money in 10 years

Here’s two ways to calculate how long it will take to double your money based on a certain annual percentage return. The first is a quick, rough calculation you can do in your head. The second “real” calculation requires a calculator or spreadsheet.

18 Jul 2019 You can grow the money you save by investing it to earn a return. the interest you earn, at the end of the 2 years you will have \$110 – the \$100 you how long it will take you to double your money through compounding. Although the rule is not always exact, it usually works as long as the interest rate is  13 Apr 2016 This rule says that if you divide 72 by your rate of return, the. 7 percent a year, I would expect my money to double in about 10 years (72 / 7 = 10.3 years). If you were to invest 100 percent in the S&P 500, there would have  To arrive the interest rate at which an amount doubles in N years. Since Banks in India adopt quarterly and compounding,we can modify the above as With simple interest, you'd need 10% per year for ten years to double your money. 29 Apr 2019 There are several schemes where your money can be doubled in a particular However, it is important to note that you shouldn't expect magic here, have a fixed tenure of 5 or 10 years, along with a fixed rate of interest. 7 Jul 2011 (For more ideas on how you can double your money, check out 5 Ways To (the current rate on Ally Bank's 5-year high-yield CD) and you have \$1,000 to (To help you invest in the long term, see 10 Tips For The Successful

## 84X-table-10. The Rule of 72 Multiply that interest rate times the number of periods and you will get the product 72. To use the If you want your money to double every 8 years, you will need to earn an interest rate of 9% (72 divided by 8).

11 Dec 2019 or Rule of 72? How the Rule of 72 would help you to double your money? You need to divide such fixed interest rate or return with number 72. E.g. If you want to invest Rs 10 Lakhs and to get 20 lakhs in 10 years. Your  8 Apr 2019 10 20 0 20 40 60 80 Annual return (% per year) Number of years to double At 6 % interest, your money takes 72/6 or 12 years to double. in four years, (72/4), then you will need to earn an annual interest rate of 18%. If you  30 May 2019 Simply divide 72 by the known or assumed interest rate. You can also calculate the Rule of 72 with the doubling time as the assumed variable. For example, if you want to double your money in 10 years, you'll need to  18 Jul 2019 You can grow the money you save by investing it to earn a return. the interest you earn, at the end of the 2 years you will have \$110 – the \$100 you how long it will take you to double your money through compounding. Although the rule is not always exact, it usually works as long as the interest rate is

### interest and use the rule of 72 to estimate the time it takes money to double. You don't need a lot of money to open a savings account, and you can withdraw your money Press “Simple” for simple interest and choose a rate of return, 1– 10 percent. same amount (\$1–\$10 respectively) each year for the life of the loan.

I immediately whipped out my HP-12C calculator and determined that it would take a steady annual rate of return of 7.2 percent for each of the 10 years to double your money. For example, if the interest rate earned is 6%, it will take 12 years (72 divided by 6) for your money to double. If you want your money to double every 8 years, you will need to earn an interest rate of 9% (72 divided by 8). Here's another way to demonstrate that the Rule of 72 works.

### 18 Jul 2019 If you need to borrow money to finance a home purchase or a The term interest indicates how much you can earn from the money you originally invest. of years you're investing your money to find out what your return rate

30 Aug 2011 All you have to do is divide 72 by the interest rate. what interest rate you'd need to double your money in a given amount of time. and would like to double it in the next 10 years without adding anything to it, you'd need an  there are some simple ways of using interest rates to grow your savings faster. So, you earn interest on the money you deposit into your saving AND on the After 10 years, the \$10K investment will have reached \$25,937, which means you double your initial investment, through the power of compounding interest.

## Compound interest is the money paid on interest you have already earned or paid. is also the reason why borrowing money at high interest rates, or for a long time, can If you can earn 7% interest a year, your money will double every decade! Earn more interest, at say 10% a year, and it will only take 72 divided by 10,

The Rule of 72: Divide 72 by the interest rate to get the number of years to double your investment. A good estimate for how long it takes to double your money. Alternatively you can calculate what interest rate you need to double your investment and makes this formula most accurate for interest rates from 6% to 10%. In finance, the rule of 72, the rule of 70 and the rule of 69.3 are methods for estimating an investment's doubling time. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain For instance, if you were to invest \$100 with compounding interest at a rate of 9% per annum, the rule of  Find out how long and at what interest rate you would require to double your of years, and the interest % represents the rate of return needed to double your this will go beyond the 20-year mark but at a higher interest rate) or; Buy into a 10   Sign In | Create an Account | Talk to Us | Need Help? You can use the rule of 72 to figure out how long it will take to double your money based on 72 divided by the rate of interest being paid = the number of years it will take for your It will take an investment with compound interest at 10 percent 7.2 years to double.

30 May 2019 Years to double your money (T) = 72 / Interest rate (R) \$50,000 portfolio in 6 years, using the formula, you will need to put your money in an month, it will take you 70 months (5 years and 10 months) to pay off the balance. 2 Jul 2019 Simply by dividing 72 by the annual rate of return, investors obtain a fixed interest rate of 10% would take 7.2 years ((72/10) = 7.2) to grow to \$2000. If you invest money at a 10 percent return, you will double your Investing in different assets will have different ups and downs – markets are volatile. 18 Jul 2019 If you need to borrow money to finance a home purchase or a The term interest indicates how much you can earn from the money you originally invest. of years you're investing your money to find out what your return rate