close
    has $2,500 invested in a bank that pays 4% annually. How long will it take for his funds to double?

    0  Views: 3287 Answers: 3 Posted: 12 years ago

    3 Answers

    17.673 yr but I am the wrong person to ask...

    4% of $25,000 is $100.  At that rate, it would take 25 years to double the investment.  This presumes you withdraw the interest.  If you reinvest the interest, it gets more complicated. 
    $100 first year
    $104 year 2 = $208
    $108.32 year 3 = 316.32 
    $112.65 year 4 = $428.97
    $117.16 year 5 = $546.13
    $121.85 year 6 = $667.98
    $126.72 year 7 = $794.70
    $131.79 year 8 = $926.49
    $137.06 year 9 = $1063.55
    $142.54 year 10 = $1206.09
    $148.24 year 11 = $1354.33
    $154.27 year 12 = $1508.60
    $160.34 year 13 = $1668.94
    $166.76 year 14 = $1835.70
    $173.43 year 15 = $2009.13
    $180.37 year 16 = $2189.50
    $187.58 year 17 = $2377.08
    $195.08 year 18 = $2572.16   That is $72.16 too much.  You earn $0.54189777 per day during year 18.  You need $122.92 to reach $2500 and realize double your investment.  It would take about 227 days to reach that amount, which is around August 15 (not counting this a leap year). That is a little more than 62% of the 18th year.  
    All that just to pretty much agree with Ed1530!
    Way to go ED1530! 

    25 years @ 4%.

    Shootah

    4% = 100 per year X 25 = $2,500.
    dunc

    approximately 18 yrs I think
    Shootah

    No one mentioned compounded interest.
    Bob/PKB

    Oh, there's always one bozo in the crowd who will try to do that compound interest stuff. I'm not sure I did it right, but I did "something".


    Top contributors in Science & Mathematics category

     
    ROMOS
    Answers: 53 / Questions: 0
    Karma: 2940
     
    Bob/PKB
    Answers: 63 / Questions: 0
    Karma: 1830
     
    Colleen
    Answers: 84 / Questions: 0
    Karma: 1760
     
    Benthere
    Answers: 1 / Questions: 0
    Karma: 1670
    > Top contributors chart

    Unanswered Questions

    ta88law1
    Answers: 0 Views: 8 Rating: 0
    CEO Hình Tân Long 123B
    Answers: 0 Views: 8 Rating: 0
    77winbusiness
    Answers: 0 Views: 14 Rating: 0
    79KING
    Answers: 0 Views: 12 Rating: 0
    79KING | TRANG CHỦ CHÍNH THỨC 2024
    Answers: 0 Views: 12 Rating: 0
    79KING | TRANG CHỦ NHÀ CÁI CHÍNH THỨC 2024
    Answers: 0 Views: 14 Rating: 0
    > More questions...
    453594
    questions
    720206
    answers
    759617
    users