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Time value of money

Maths & Stats

In how many years will a sum of money doubles at 5% p.a. compound interest ?

Prerana raghavendra

CA Foundation

★ 3K+

25-Feb-20 19:07

522

Answers (4)

14 year 5 month

rishi pandey

CA Foundation

★ 1K+

25-Feb-20 19:12

You can use approximation tool - Rule of 71. 71/5 = approx 14.2

CA Suraj Lakhotia

Admin

25-Feb-20 22:17

CA Suraj Lakhotia Admin

You can use approximation tool - Rule of 71. 71/5 = approx 14.2

How those rules are coming in FM In IPCC study materials they gave rule-72 In some MBA books I saw Rule-69 You use here 71 Pls tell ,What's the logic behind this compounding?

Divya tejasri

CA Inter

★ 13K+

01-Mar-20 17:31

Divya tejasri

How those rules are coming in FM In IPCC study materials they gave rule-72 In some MBA books I saw Rule-69 You use here 71 Pls tell ,What's the logic behind this compounding?

It is an approximation tool and is not actual. The logic is it takes ~ 70 years for a sum to double @1%.

CA Suraj Lakhotia

Admin

02-Mar-20 10:37