[Solved] A sum of money doubles itself in 7 years when invested at si (2024)

FAQs

How many years does a sum of money doubles itself in 7 years? ›

nm97 wrote: A sum of money doubles itself in 7 years. In how many years it becomes four fold? If the initial amount of money is x dollars, then 7 years later, it will be 2x dollars, and in another 7 years, it will be 4x dollars. Thus, it takes 14 years to quadruple the initial amount money.

If your initial amount was X, it becomes 2*X = 2X after 7 years. Now, if you start with 2X, it would become 2*2X= 4X in 7 more years. Overall it will take 7+7= 14 years to become fourfold! At what rate will a sum double itself in 7 years if the intrest is compounded annually?

⇒ R = 100/8 = 12.5% per annum. ∴ The rating percentage of the interest will be 12.5%.

⇒N=16 years. A sum of money, lent out at simple interest, doubles itself in 8 years. Find in how many years will the sum become triple (three times) of itself at the same rate per cent ?

All you do is divide 72 by the fixed rate of return to get the number of years it will take for your initial investment to double. You would need to earn 10% per year to double your money in a little over seven years.

In reality, a 10% investment will take 7.3 years to double (1.10^7.3 = 2). The Rule of 72 is reasonably accurate for low rates of return. The chart below compares the numbers given by the Rule of 72 and the actual number of years it takes an investment to double.

A = R s 2 P S I = A - P = 2 P - P = P R = S I × 100 P × T = P × 100 P × 7 = 100 7 %

The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. In this case, 18 years.

Therefore, at same Simple interest rate, amount will be 10 times in 22. 5 years.

So time required is 10 years.

At what rate percent per year will a sum double itself in 6 1/4 years? ›

The correct Answer is:16% Step by step video, text & image solution for At what rate percent per year will a sum double itself in 6""1/4 years ?

⇒ T = 8 years 4 months. Hence, the correct answer is 8 years and 4 months.

⇒R=100x6x=16.6%

The time required for a sum of money to double at 5% annum compounded continuously is (in years) 13.9.

Hence,in 15 Years amount to eight times itself.

The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double.

The time required for a sum of money to double at 5% annum compounded continuously is (in years) 13.9.

One can also use this to compute the returns a portfolio should generate to double money in a given time period. If you want to double it in five years, the portfolio should be invested such that it yields 72/5=14.4%.