How long will it take for an investment made at 3.55% per year, compounded continuously, to double?
How long will it take for an investment made at 3.55% per year, compounded continuously, to double? And how do I go about finding the answer?
Investment best answer:
Answer by Len
Using the "rule of 72," it will take 20.28 years or about 20 years and a few months more. This allows for constant compounding on an annual basis.
Divide the interest rate into "72" and the number you get equals the period required for a doubling.
Len
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Michelle McCarthy - Nuveen Investments
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