Question

At which interest rate compounded annually will money in savings double in five years?

Answer 1

20%

Answer 2

rule of thumb is divide by 72.

For example, a 5% annual interest rate will have doubled the initial capital in approximately 72/5=14.4 years.

You could use algebra to get an approximate answer for your question - 72/x=5, solve for x.

If you are looking for the exact answer, use the equation for compound interest. I'm sure that's kicking around google somewhere :-) I hope that this helps

Answer 3

Thankks ; )

Answer 4

ooo, and 20% is a bit high, fyi :-) if you are using it for homework....!

Answer 5

Kay.. But i'm using in like a credit recovery class and the teachers can't help. It's the way they have it set up that has COMPLETELY Confused me.