Question

You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 8 percent interest. Approximately how long must you wait for your investment to double in value

Answer 1

It will take 8.75 years to double the investment.

Step-by-step explanation:

Giving the following information:

Interest rate= 8%

To calculate the time required to double any amount of money, we can use the rule of 70. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.

Number of Years to Double= 70/Annual Rate of Return

Number of Years to Double= 70/8

Number of Years to Double= 8.75

It will take 8.75 years to double the investment.