How many years will it take a $5000 investment to reach $7500 at an 8% interest rate?
Therefore, it takes 5.08 years for $ 5 , 000 \$5,000 $5,000 to grow to $ 7 , 500 \$7,500 $7,500 if it is invested at 8% compounded monthly. When compounded semiannually, time is 5.17 years and when compounded monthly, time is 5.08 years.
How many years will it take a $5000 investment reach $7500 at an 8% interest rate?
Expert-Verified Answer
Final answer: To reach $7,500 with an 8% interest rate, it would take approximately 9.7 years. Using a calculator, we find that time is approximately 9.7 years.
How long will it take for an investment of $5000 to grow to $7500 if it earns 10% simple interest per year?
Simple interest formula: I = nip. n = year(s),n = (I) / (iP). I = simple interest, i = 0.1 n = 7500 / (0.1 x 5000) = 5 It will take 5 years for the investment of $5,000 to increase to $7,500 at a simple interest rate of 10%.
What is the time required for an investment of 5000 dollars to grow to 6000 dollars at an interest rate of 7.5 per year compounded quarterly
Final answer:
In this case, the investment of $5000 will take approximately 4.08 years to grow to $6000 at an interest rate of 7.5% per year, compounded quarterly.
How much will the investment be worth in 20 years if $300 is invested at a rate of 5 per year and is compounded quarter
In this case, P = $300, r = 5%, n = 4 (since interest is compounded quarterly), and t = 20. Therefore, the investment will be worth $1,016.09 after 20 years.
How long will it take $7000 to double if you earn 8% interest?
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 $7000 to double at the rate of 8?
ANSWER — It will take 9 years for the amount to double at annual interest rate of 8%. Refer to calculations below. Based on the question, the expected final amount is $14,000 (i.e., $7,000 × 2).
How many years will it take $5000 to grow to $7500 if it is invested at 8% compounded monthly?
You can put this solution on YOUR website! . First divide 5000 from both sides. n = 10.3380351 half years or 5.1690175 years.
How long will it take $5000 to grow to $7000 if it is invested at 6% compounded quarterly?
Expert-Verified Answer
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.
What is $5000 invested for 10 years at 10 percent compounded annually?
Answer and Explanation:
The future value of the investment is $12,968.71. It is the accumulated value of investing $5,000 for 10 years at a rate of 10% compound interest.
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.
What annual rate of return is earned on a $5000 investment when it grows to $7000 in six years?
| Particulars | Amount |
|---|---|
| Present value | 5,000 |
| Future value | 7,000 |
| Time, n | 6 |
| Rate of return | r |
What annual rate of return is earned on a $5000 investment when it grows to $9000 in five years?
Answer and Explanation:
The calculated value of the annual rate of return on the given investment is 13.7%. The annual rate of return on the investment is given by: = ( Amount due in 5 years Amount invested today ) 1 Number of Years − 1.
How much will $3000 be worth in 20 years?
As you will see, the future value of $3,000 over 20 years can range from $4,457.84 to $570,148.91. This is the most commonly used FV formula which calculates the compound interest on the new balance at the end of the period.
How can I double $5000 dollars?
- 6 Easy Ways To Double $5,000. ...
- Invest in the Stock Market. ...
- Try Peer-to-Peer Lending. ...
- High-Yield Savings Account. ...
- Real Estate Investment. ...
- Start or Expand a Small Business.
What will $1 000 be worth in 20 years?
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 5% | $1,000 | $2,653.30 |
| 6% | $1,000 | $3,207.14 |
| 7% | $1,000 | $3,869.68 |
| 8% | $1,000 | $4,660.96 |
Can I live off interest on a million dollars?
Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.
What is the rule of 69?
Rule of 69 is a general rule to estimate the time that is required to make the investment to be doubled, keeping the interest rate as a continuous compounding interest rate, i.e., the interest rate is compounding every moment.
What is the 7 year rule in investing?
To estimate the number of years it would take to double your money at a 7% annual rate of return, you can use the Rule of 72. Divide 72 by the annual rate of return: 72 ÷ 7 = 10.29. So, at a 7% return rate, it would take approximately 10.29 years to double your money.
What is the rule of 70 in finance?
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.
What is rule of 70?
The Rule of 70 is a calculation that determines how many years it takes for an investment to double in value based on a constant rate of return. Investors use this metric to evaluate various investments, including mutual fund returns and the growth rate for a retirement portfolio.
What is the rule of 70 for retirement?
The 70% rule for retirement savings suggests that your estimated retirement spending should be about 70% of your pre-retirement, after-tax income. For example, if you take home $100,000 a year, your annual spending in retirement would be about $70,000, or just over $5,800 a month.
How much to invest per month to become a millionaire in 20 years?
Given an average 10% rate of return on the S&P 500, you need to save about $1,400 per month in order to save up $1 million over 20 years. That's a lot of money, but the good news is that changing the variables even a little bit can make a big difference.
How much will I have if I invest $500 a month for 10 years?
If you invested $500 a month for 10 years and earned a 6% rate of return, you'd have $81,940 today. If you invested $500 a month for 10 years and earned an 8% rate of return, you'd have $91,473 today.
How much will I have in 30 years if I invest $1000 a month?
Investing $1,000 a month for 30 years, with an average annual return of 7%, can yield a total of approximately $1.22 million. This calculation shows how regular, long-term investments can grow significantly over time, thanks to compound interest.
