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Your invest 20,000 at 7.5% interest for 48 years,  How much will it be worth at the end of 48 years?

 Feb 9, 2022
 #1
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Compounded annually    would be     20 000 ( 1 + .075)48

 

 

Simple interest would be     20 000 (.017)(48) + 20000

 Feb 9, 2022
 #3
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***  edit ****       typo fixed

 

Simple interest would be     20 000 (.075)(48) + 20000

ElectricPavlov  Feb 10, 2022
 #2
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Using "Rule of 72", we get:

 

72 / 7.5 ==9.6 years - when money doubles

 

48 / 9.6 ==5 - doublings.

 

20,000  x  2^5 ==20,000  x  32 ==$640,000 - what $20,000 will grow to in 48 years using "Rule of 72"

 

The "actual " growth is: $20,000 x  1.075^48 ==$643,630.00 - in 48 years at 7.5% comp. annually.

 Feb 9, 2022

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