Question

Approximately how long will it take to double your money if you get an annual return of 3.3%,6.1%, or 9.4% on your investment?

Answer 1

Answer: for 3.3% it take 30.3 years, for 6.1%, it takes 16.393 years, for 9.4% it takes 10.638 years for the money to double.

Explanation:

for a rate of r = 3.3%, 2P = P*(1 + rt)

2 = 1 + rt

1 = rt

t = 1/r = 1 / (0.033) = about 30.3 years money will double.

For a rate of r = 6.1%

t = 1/r = 1 / (0.061) = 16.393 years

For a rate of 9.4%

t = 1 / 0.094 = 10.638 years