Quick Answer: What Interest Rate Do You Need To Double Your Money In 5 Years?

14.4% per year

How can I double my money in 5 years?

Since you are looking for the investment option that may double your money in 5 years, then with the Rule of 72, it works out to be 72/5= 14%. That means you will be required at least 14% average annual returns to double your invested amount. Now that you know how much returns you may require.

How long does it take to double your money at 5 interest?

This is the number of years it will take for your money to double. For example, if your money is earning an 8 percent interest rate, you’ll double your money in 9 years (72 divided by 8 equals 9). Or, if your money is earning a 5 percent interest rate, you’ll double it in 14.4 years (72 divided by 5 equals 14.4).

How long will it take an investment to double in value using the Rule of 72 if its earn 2% 5% 10%?

The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.

What interest rate would you have to earn if you wanted to double an investment in 4 years?

The Rule of 72 indicates than an investment earning 9% per year compounded annually will double in 8 years. The rule also means if you want your money to double in 4 years, you need to find an investment that earns 18% per year compounded annually.

How can I invest 50k wisely?

While there are plenty of investment options out there, these are my recommendations for what will serve you best with $50,000 to invest.

  • Invest Cash in a Money Market Account.
  • Invest in Stocks.
  • Invest in a CD.
  • Determine Your Investment Allocation.
  • Stock Your Emergency Fund.
  • Invest in Bonds.

What type of investment has the highest return?

9 Safe Investments With the Highest Returns

  1. High-Yield Savings Accounts.
  2. Certificates of Deposit.
  3. Money Market Accounts.
  4. Treasuries.
  5. Treasury Inflation-Protected Securities.
  6. Municipal Bonds.
  7. Corporate Bonds.
  8. S&P 500 Index Fund/ETF.

How long will it take $10000 to reach $50000 if it earns 10% annual interest compounded semiannually?

16.5 Years

How often will my money double?

The rule states that the amount of time required to double your money can be estimated by dividing 72 by your rate of return. 1 For example: If you invest money at a 10% return, you will double your money every 7.2 years.

How can I double my money fast?

3:46

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HOW TO DOUBLE YOUR MONEY – YouTube

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What will $5000 be worth in 20 years?

How much will an investment of $5,000 be worth in the future? At the end of 20 years, your savings will have grown to $16,036. You will have earned in $11,036 in interest.

Does 401k double every 7 years?

If you want to double your money, the rule of 72 shows you how to do so in about seven years without taking on too much risk. If you invest at an 8% return, you will double your money every 9 years. (72/8 = 9) If you invest at a 7% return, you will double your money every 10.2 years.

What is the best way to invest $10 000?

Here are 5 smart ways to invest $10,000:

  • Invest in Stocks, Mutual Funds or Bonds.
  • Open a High-Yield Savings or Money Market Account.
  • Try Out Real Estate Crowdfunding.
  • Start your dream business.
  • Open a Roth IRA.