How long will it take for you to get $100000.00 if you invest $5000.00 in an account giving you 9.7% interest compounded continuously?
Expert-Verified Answer
Answer and Explanation: The correct answer is C. 4.55 years.
Expert-Verified Answer
It will take approximately 26.81 years or 26 years and 8 months to reach $50,000 if you invested $5,000 at an 8.7% continuous compounding interest rate.
Thus, it will take 14.21 years for the money to double.
72 ∕ 8 = 9, so it will take about 9 years to double your money. A 10% interest rate will double your investment in about 7 years (72 ∕ 10 = 7.2); an amount invested at a 12% interest rate will double in about 6 years (72 ∕ 12 = 6).
∴ Compound Interest =Rs12100−Rs10000=Rs2100.
In this case, P = 10000, r = 2, n = 4 (since the interest is compounded quarterly), and t = 6/12 = 0.5 (since the investment is held for 6 months, which is equivalent to 0.5 years). Therefore, the final amount, including interest, would be 22500 rupees.
- S&P 500 index funds.
- Nasdaq-100 index ETFs.
- International index funds.
- Sector ETFs.
- Thematic ETFs.
- Real estate investment trusts (REITs).
- Investing with the greats.
A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.
If you're saving $10,000 a year and have an additional $7,100 you can put into savings, Singh said a high-yield savings account with a 4% interest rate could take you to $100,000 in 10 years.
What is the 8 4 3 rule of compounding?
The rule of 8-4-3 for mutual funds states that if you invest Rs 30,000 monthly into an SIP with a return of 12% per annum, then your portfolio will add Rs 50 lacs in the first 8 years, Rs 50 lacs in the next 4 years to become Rs 1 cr in total value and adds further Rs 50 lacs in the next 3 yrs to reach Rs 1.5 cr.
1 The best way to earn 12% interest on your savings is by investing in a high-yield savings account. High-yield savings accounts are offered by some banks and credit unions and generally offer higher interest rates than traditional savings accounts.
The rule of 70 is used to determine the number of years it takes for a variable to double by dividing the number 70 by the variable's growth rate. The rule of 70 is generally used to determine how long it would take for an investment to double given the annual rate of return.
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.
Final answer:
It will take approximately 15.27 years to increase the $2,200 investment to $10,000 at an annual interest rate of 6.5%.
1 At 10%, you could double your initial investment every seven years (72 divided by 10). In a less-risky investment such as bonds, which have averaged a return of about 5% to 6% over the same period, you could expect to double your money in about 12 years (72 divided by 6).
Compound interest formulas
Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.
=> ₹6050 = ₹5000 + C.I. => ₹6050 - ₹5000 = C.I. => ₹1050 = C.I. So, the compound interest on ₹5000 for 2 years at the rate of 10% is ₹1050 .
So, C.I = 26,620 - 20,000 = ₹ 6,620.
Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.
How much interest will $50,000 earn in a year?
How much interest will I earn on £50,000? With £50,000 in Monument Bank's easy access account paying 5.01%, you could earn £2,505.00 over a year, or £208.75 per month.
$200 = P imes 0.03 imes 5. P = $1333.33 (approximately). Total future amount = $1533.33.
The classic approach of doubling your money by investing in a diversified portfolio of stocks and bonds is probably the one that applies to most investors. Investing to double your money can be done safely over several years, but for those who are impatient, there's more of a risk of losing most or all of their money.
- Build up your distance gradually. Building up to a 10K takes time so don't expect to achieve too much too soon. ...
- Take rest days. ...
- Cross-train. ...
- Stretch. ...
- Do one long run a week. ...
- Do a threshold session once a week. ...
- Set yourself a goal. ...
- Stick your training plan on the fridge.
- Invest in your 401(k) and get the matching dollars. ...
- Use a robo-advisor. ...
- Open or contribute to an IRA. ...
- Buy commission-free ETFs. ...
- Trade stocks.
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