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

0  Views: 3289 Answers: 3 Posted: 12 years ago

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".

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