Accurate Doubling Time Calculator for Your Investments

Questions with solution

Question:
What is the projected duration required for an investment of $5000, growing at a rate of 15%, to double in value?

Answer:
Initial Amount: $5000
Growth Rate: 15%
Target Amount (Double the initial amount): $10,000

Year 1:
Initial Amount: $5000
Growth: ($5000 * 15%) = $750
Year-end amount: $5000 + $750 = $5750

Year 2:
Current Amount: $5750
Growth: ($5750 * 15%) = $862.50
Year-end amount: $5750 + $862.50 = $6612.50

Year 3:
Current Amount: $6612.50
Growth: ($6612.50 * 15%) = $991.88
Year-end amount: $6612.50 + $991.88 = $7604.38

Year 4:
Current Amount: $7604.38
Growth: ($7604.38 * 15%) = $1140.66
Year-end amount: $7604.38 + $1140.66 = $8745.04

Year 5:
Current Amount: $8745.04
Growth: ($8745.04 * 15%) = $1311.76
Year end amount: $8745.04 + $1311.76 = $10,056.80

In the 5th year, the year-end amount exceeds the target amount. Therefore, it will take approximately 5 years for the investment to double, reaching $10,056.80.