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

Question

turingtest · Answer

20%

anonymous · Answer

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

anonymous · Answer

Thankks ; )

anonymous · Answer

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

anonymous · Answer

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.