If I were to invest any amount of money, let's say $100, the interest rate needed to double my money would depend on the time period and the compounding frequency. Since you mentioned compounding monthly, I can calculate the interest rate required.
To find the interest rate, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount (double the initial amount)
P is the principal amount (initial investment)
r is the interest rate (unknown)
n is the number of times interest is compounded per year (12 for monthly compounding)
t is the number of years
In this case, we want to double the money, so A = 2P.
Using the formula, we can rearrange it to solve for r:
2P = P(1 + r/12)^(12t)
Simplifying further:
2 = (1 + r/12)^(12t)
To find the interest rate, we need to solve for r. However, without knowing the time period (t), it's not possible to calculate the exact interest rate. Could you please provide the time period in years so that I can calculate the interest rate needed to double the money?