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

Guest Feb 9, 2022

#1**+1 **

Compounded annually would be 20 000 ( 1 + .075)^{48}

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

ElectricPavlov Feb 9, 2022

#3**0 **

*** edit **** typo fixed

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

ElectricPavlov
Feb 10, 2022

#2**0 **

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.**

Guest Feb 9, 2022