How long would it take to double your money in an account paying 8% compounded quarterly? Ignoring leap years, the investment will be doubled in ______ years and ________ days. (Round to the nearest whole number as needed.)

How long would it take to double your money in an account paying 8% compounded quarterly? Ignoring leap years, the investment will be doubled in ______ years and ________ days. (Round to the nearest whole number as needed.) | Homework.Study.com (2024)

Question:

How long would it take to double your money in an account paying 8% compounded quarterly? Ignoring leap years, the investment will be doubled in __________ years and __________ days. (Round to the nearest whole number as needed.)

Time Value of Money:

The time value of money theory postulates that the worth of money changes and this is attributed to interest earned plus the time period the money is invested. The theory illustrates the relationship between four variables: interest rates, time period, present amount, and future quantity. As a result, if you want to know how long it will take for your money to double, you must also know the other three variables, and we will also utilize logarithms.

Answer and Explanation:1

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To calculate the number of years it takes to double your money, apply the below steps.

1. Assume present value =X implying that the future value =2X

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FAQs

How long would it take to double your money in an account paying 8% compounded quarterly? ›

Answer and Explanation:

Since interest is compounded quarterly we first estimate the number of quarters then convert to years. The investment will be doubled in 8 years and 274 days.

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How long does it take for 8% interest to double? ›

The result is the number of years, approximately, it'll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

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How long will it take money to double at 8 percent interest when compounded semiannually? ›

Answer and Explanation:

Since it is compounded semi-annually, the interest rate would be 8% / 2 = 4%. For semi-annual, the number of years would be 17.7 / 2 = 8.8. Hence, it will take 8.8 years to double the investment.

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How long would it take to double your money in an account that paid 6% per year? ›

So, if the interest rate is 6%, you would divide 72 by 6 to get 12. This means that the investment will take about 12 years to double with a 6% fixed annual interest rate.

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