jonmm
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Your economics teacher should have been more clear. It depends on the average annual interest rate. As a rule of thumb, take 72 and divide by the interest rate to see how fast money will double. Your economics teacher must have been assuming a 10% annual rate. This is fairly high for the current economy.
A typical investment portfolio return with a reasonable mix of stock and bonds will return 8% per year over the long term, which means the money will double every 9 years. |
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grubbman7
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I think that you either misunderstood what he was saying or he doesn't understand what he was saying.
He was prob referring to "the rule of 72" which is a basic approximation for figuring out how long an investment would take to double in value if you know the compound interest rate.
if it is 9% compound interest
72 / 9 = 8 years
hope this makes it clearer.
if he insists that he his right, tell him to go put $100 in the bank and see how much is left in 7 years.
you might get a detention, but you will teach him a lesson |
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regerugged
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It depends on the interest rate. It would take a 14% interest rate to double your money in 7+ years. Highly unlikely but possible. |
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Yardbird
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Some do, some don't. Your teacher probably means on average. |
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I'm Living the Life I Wanted
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if you have your money invested in a mutual fund, it is possible to double in 7 years...the more money that is invested, and the higher the intrest rate ( i recommend a 12% rate) your money will double quickly....if you start investing as young as possible...it will double before you know it. |
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johnny brah
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If the investment grows at 10% a year, it will double in 7.2 years.
If it grows at 15% a year, it will double in 5 years. |
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the d
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inflation very often does,
What kind of investments??
Bank Cd's not a chance, like maybe every twenty years. |
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src50
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I think you misunderstood. Only based on an assumed return rate. |
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Joe_know_it_all
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not all investments do but the S&P 500 average return per year is 10.4%. That is a standard average when an investment will double. But it all depends, you can double an investment in 6 months if you invest with more risky portfolio. |
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