182k views
5 votes
If you earn an annual interest rate of 8.9 percent, how many years will it take to double your money

1 Answer

1 vote

Answer:

Every 7.86 years the investment doubles.

Step-by-step explanation:

Giving the following information:

Interest rate= 8.9% compounded annually

To determine the number of years to double the money, we can use the rule of 70:

The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.

Number of Years to Double= 70/Annual Rate of Return

Number of Years to Double= 70/8.9

Number of Years to Double= 7.86 years

Every 7.86 years the investment doubles.

User Puretppc
by
7.3k points