You鈥檝e saved $500 in an account that earns 4 percent interest. How long will it take for your money to double?

it is a simple solution. each year you accumulate 4% growth, so each time you multiply by 1.04 so first year - 500 x 1.04 = 520

second year 520 x 1.04 = 540.8 and so on.



so with this in mind you will have $1014.93 in 19 years.



but this will be taxed on capital gains so the actual figure you are looking at will be in the region of 22 years.You檝e saved $500 in an account that earns 4 percent interest. How long will it take for your money to double?
If you assume that the interest will compound annually, and you use the ';rule of 72';, it will take you approximately 18 years to double the money in this account at 4%.



The rule of 72 states that in order to easily estimate the time it would take for an investment to double, you simply divide 72 by the interest rate. In this case 72/4 = 18. The rule of 72 is a pretty good estimator for this type of calculation provided the interest rates in question are 20% or below. Above that, it gets a bit less accurate.You檝e saved $500 in an account that earns 4 percent interest. How long will it take for your money to double?
This is a trick question and can't be answered.



Why? Because you need to take taxes into consideration. It all depends on what income tax bracket you're in. Now if ONLY you had asked the question stating that the account is a Roth IRA..... then it would be simple.



Sigh.... youth!
17.67 Years (Rule of 72).