How many years will it take a $5000 investment to reach $7500 at an 8% interest rate?
Expert-Verified Answer
How long will it take for an investment of $5000 to grow to $7500 if it earns 10% simple interest per year?
5 years will it take for an investment of $5000 to grow to $7500 if it earns 10% simple interest per year.
What is the time required for an investment of 5000 dollars to grow to 7800?
Final answer:
The time required for an investment of $5000 to grow to $7800 at an interest rate of 7.5% per year, compounded quarterly, is approximately 5.68 years.
What is the time required for an investment of $4000 to grow to $8000 at an interest rate of 7.5% per year compounded quarterly?
Final answer:
To find the time required for an investment of $4,000 to grow to $8,000 at an interest rate of 7.5% per year, compounded quarterly, we can use the compound interest formula. Plugging in the values and solving for Time gives us approximately 9.47 years.
At what rate of annual interest will an investment quadruple itself in 12 years?
\[r \approx 12.2\%\] Therefore, the rate of annual interest at which an investment quadruples itself in 12 years is approximately 12.2%. The correct answer is C. 12.2%.
What is 8 percent interest on 5000?
The future value will be $6,802.44. Given information: Present value = $5,000. Interest rate = 8%
At what rate will $5000 earn $1200 interest in 3 years?
So, the person will earn $1,200 in interest after 3 years on a $5,000 investment at a simple interest rate of 8% per year.
How long will it take $5000 to grow to $7000 if it is invested at 6% compounded quarterly?
it will take approximately 5.3 years for 5,000 to grow to 7,000 if it is invested at 6% compounded quarterly by using formula of compound interest. Therefore, it will take approximately 5.3 years for 5,000 to grow to 7,000 if it is invested at 6% compounded quarterly.
How long will it take $4000 to grow to $9000 if it is invested at 7% compounded monthly?
Substituting the given values, we have: 9000 = 4000(1 + 0.06/4)^(4t). Solving for t gives us t ≈ 6.81 years. Therefore, it will take approximately 6.76 years to grow from $4,000 to $9,000 at a 7% interest rate compounded monthly, and approximately 6.81 years at a 6% interest rate compounded quarterly.
How long will it take you to double your money if you invest $1000 at 8% compounded annually?
The result is the number of years, approximately, it'll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
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?
t = ln(100,000/5,000)/0.097 ≈ 12.35 years Using the formula for continuous compounding interest, it will take approximately 12.35 years for a $5,000 investment to grow to $100,000 at an interest rate of 9.7% compounded continuously.
How long will it take for $5000 to accumulate to $8000 if it is invested at an interest rate of 7.5 %/ a compounded annually?
To calculate how long it will take for $5000 to grow to $8000 with an annual compound interest rate of 7.5%, we use the compound interest formula, and solve for time 't', which is approximately 6.5 years. Therefore, the correct answer is option c. 6.5 years.
How much does $10,000 grow in 30 years?
Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 6% return, for example, your $10,000 would grow to more than $57,000.
What is the 7 year rule in investing?
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).
Will my investment double in 10 years?
The Rule of 72 is focused on compounding interest that compounds annually. For simple interest, you'd simply divide 1 by the interest rate expressed as a decimal. If you had $100 with a 10 percent simple interest rate with no compounding, you'd divide 1 by 0.1, yielding a doubling rate of 10 years.
Does money double every 7 years?
How the Rule of 72 Works. For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72/10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double (1.107.3 = 2).
How can I double $5000 dollars?
To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.
How much will 5000 be worth in 5 years?
As you will see, the future value of $5,000 over 5 years can range from $5,520.40 to $18,564.65.
Is 8% a good interest rate?
A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit) 580 to 669: Around 18% (look for loans for fair credit)
Can I live off interest on a million dollars?
Historically, the stock market has an average annual rate of return between 10–12%. So if your $1 million is invested in good growth stock mutual funds, that means you could potentially live off of $100,000 to $120,000 each year without ever touching your one-million-dollar goose. But let's be even more conservative.
What is the interest on 5000 for 3 years?
When calculating simple interest, it's as easy as multiplying your principal balance by the given interest rate to find how much you'll earn in a year. For example, if you have $5,000 in an account that has a 3% interest rate, the balance will earn $150 in one year. In three years, the balance will earn $450.
How much is $10000 for 5 years at 6 interest?
An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.
What ROI will double your money in 6 years?
You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.
How long will it take $1000 to double at 6 interest?
So, if the interest rate is 6%, you would divide 72 by 6 to get 12. This means that the investment will take about 12 years to double with a 6% fixed annual interest rate.
How long does it take for an investment of 5000 dollars to grow to 6000?
Using a calculator, we can solve for time to find that the investment will take approximately 4.08 years to grow from $5000 to $6000.
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