Question

You invest $170 in a mutual fund today that pays 5.90 percent interest annually. How long will it take to double your money?

Answer 1

To double your money with a 5.90% annual interest rate, it will take approximately 12.2 years.

Step-by-step explanation:

To calculate how long it will take to double your money, you can use the Rule of 72. The Rule of 72 is a mathematical formula that estimates the time it takes for an investment to double based on its annual interest rate.

For this example, the interest rate is 5.90%. To find the number of years, divide 72 by the interest rate:

72 / 5.90 = 12.2 years.

So, it will take approximately 12.2 years to double your money with a 5.90% annual interest rate.