A sum of money doubles itself in 7 years. In how many years it will be (2024)

FAQs

How many years does a sum of money doubles itself in 7 years? ›

If your initial amount was X, it becomes 2*X = 2X after 7 years. Now, if you start with 2X, it would become 2*2X= 4X in 7 more years. Overall it will take 7+7= 14 years to become fourfold!

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).

Hence, the rate of interest to double a money in 8 years will be 12.5% per annum.

Hence, the money will triple itself at the same rate of interest in 20 years.

Key Takeaways

All you do is divide 72 by the fixed rate of return to get the number of years it will take for your initial investment to double. You would need to earn 10% per year to double your money in a little over seven years.

Number of years to double the money = 72 / Interest Rate

It is a reasonably accurate formula and more so while using lower interest rates than higher ones. If your money is kept in a savings account that earns just 4%, it will take 18 years to double your money.

So, the time required is 20 years.

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.

In this problem, it is given that the rate is 12 % per annum and we need to find the time in which the principal amount doubles. The total amount at the end of N years is the sum of simple interest and the principal amount. Hence, the required time is 8 years and 4 months.

Will my money double in 10 years? ›

If you earn 7%, your money will double in a little over 10 years. You can also use the Rule of 72 to plug in interest rates from credit card debt, a car loan, home mortgage, or student loan to figure out how many years it'll take your money to double for someone else.

Hence,in 15 Years amount to eight times itself. A sum of money placed at C. I. doubles itself in 5 years.

Now, we want the money to be quadruple i.e. 4 times. ∴ The money will quadruple itself in 21 years.

Thumb rule is that money doubles in 72/x years where x is the approx. interest rate compounding annually. In your question 72/x is 4 years so x would be 18% approx. Say if you have to compute interest rate if money double in 6 years then answer will be 72/6 = 12 % approx.

Then S.I. = P and T = 16 yrs. Rate = 100 x P/P*16% = 6 ¼ % p.a.

If a sum doubles itself in 5 years by simple interest. Calculations: Let P be the principal amount and R be the rate of interest. ∴ The rate of simple interest p.a. is 20%.

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.