if you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?
Ah, trying to double your money, eh? Well, with a 6.5% annual interest rate, you're not exactly dealing with the speed of light here. But fear not, dear friend! I'll do the math for you. So, to find out how long it takes to double your money, we can use the rule of 72. The rule of 72 states that if you divide 72 by the interest rate percentage, you get the number of years it takes to double your money. In your case, 72 divided by 6.5 equals around 11.08 years. So, there you have it - in about 11 years, you'll be doubling the fun with your money! Enjoy the wait, my friend!
To calculate the time it takes to double your money in an account with 6.5% annual interest, you can use the rule of 72. The rule of 72 is a basic formula to estimate the time it takes for an investment to double based on a given interest rate.
The rule of 72 states that you divide 72 by the annual interest rate to estimate the number of years it will take for the initial investment to double.
In this case, the account pays a 6.5% annual interest rate. So, dividing 72 by 6.5 gives you approximately 11.08.
Therefore, it will take approximately 11.08 years to double your money in an account that pays 6.5% annual interest.
Please note that the rule of 72 is a simplified estimation, and the actual time it takes to double your money may vary depending on compounding periods and other factors.