has $2,500 invested in a bank that pays 4% annually. How long will it take for his funds to double?
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3 answers
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!
| 3 months ago. Rating: 1 | |
25 years @ 4%.
| 3 months ago. Rating: 1 | |
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