How to get double money in 5 years? (2024)

How to get double money in 5 years?

The time-tested way to double your money over a reasonable amount of time is to invest in a solid, balanced portfolio that's diversified between blue-chip stocks and investment-grade bonds.

Can I double my money in 5 years?

Money experts say that if one remains invested in a disciplined way, in the long run, mutual funds can give around 12-15% returns.So, an investment of ₹1 lakh in MFs will double ( ₹2 lakh) in six years assuming a 12% interest rate.

How much interest do you need to double money in 5 years?

For example if you wanted to double an investment in 5 years, divide 72 by 5 to learn that you'll need to earn 14.4% interest annually on your investment for 5 years: 14.4 × 5 = 72. The Rule of 72 is a simplified version of the more involved compound interest calculation.

What is the 7 year doubling rule?

According to Standard and Poor's, the average annualized return of the S&P index, which later became the S&P 500, from 1926 to 2020 was 10%. 1 At 10%, you could double your initial investment every seven years (72 divided by 10).

What will $10,000 be worth in 20 years?

The table below shows the present value (PV) of $10,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $10,000 over 20 years can range from $14,859.47 to $1,900,496.38.

How long will it take $1000 to double at 6 interest?

So, if the interest rate is 6%, you would divide 72 by 6 to get 12. This means that the investment will take about 12 years to double with a 6% fixed annual interest rate.

How many years would it take money to grow from $5000 to $10000 if it could earn 6% interest?

Expert-Verified Answer

It would take 16.66 years to grow from $5,000 to $10,000 if it could earn 6% interest. Therefore, it would take 16.66 years to grow from $5,000 to $10,000 if it could earn 6% interest.

What is the 8 4 3 rule of compounding?

The 8-4-3 rule implies that your money should double roughly every 8 years if invested at an average annual return of 8%. By applying this rule, your money doubles every 8 years, quadruples in 16 years, and multiplies by 8 in 24 years due to compounding.

What is the safest investment right now?

The Bottom Line

Safe assets such as U.S. Treasury securities, high-yield savings accounts, money market funds, and certain types of bonds and annuities offer a lower risk investment option for those prioritizing capital preservation and steady, albeit generally lower, returns.

How much money do I need to invest to make $5000 a month?

To make $5,000 per month, you would need to have a large investable sum, likely over $100,000. That would allow you to fund enough loans on the p2p platforms to earn over $5,000 in interest payments each month.

What is the best thing to invest $5000?

Invest in the Stock Market

Learning about the stock market or putting your money in an index fund can be an ideal way to invest $5,000. As you save more money, you can increase your investment in the stock market.

What is the rule of 69?

Rule of 69 is a general rule to estimate the time that is required to make the investment to be doubled, keeping the interest rate as a continuous compounding interest rate, i.e., the interest rate is compounding every moment.

What ROI should I need to double my money in 6 years?

You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.

How much money do I need to invest to make 1000 a month?

Keep in mind, yields vary based on the investment. Calculate the Investment Needed: To earn $1,000 per month, or $12,000 per year, at a 3% yield, you'd need to invest a total of about $400,000.

What is the safest investment with highest return?

In summary, savings accounts, CDs, Treasury securities, municipal bonds, index funds, and dividend stocks generally represent the safest investments that can still provide respectable returns of 3-7% per year.

Can you live off interest 1 million dollars?

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

How long will it take for you to get $100000.00 if you invest $5000.00 in an account giving you 9.7% interest compounded continuously?

t = ln(100,000/5,000)/0.097 ≈ 12.35 years Using the formula for continuous compounding interest, it will take approximately 12.35 years for a $5,000 investment to grow to $100,000 at an interest rate of 9.7% compounded continuously.

What is the 7 year rule in investing?

To estimate the number of years it would take to double your money at a 7% annual rate of return, you can use the Rule of 72. Divide 72 by the annual rate of return: 72 ÷ 7 = 10.29. So, at a 7% return rate, it would take approximately 10.29 years to double your money.

How much would $10,000 be worth in 10 years?

The table below shows the present value (PV) of $10,000 paid in 10 years for interest rates from 2% to 30%. As you will see, the present value of $10,000 paid in 10 years can range from $725.38 to $8,203.48.

How long will it take $10000 to grow to $12000 if it is invested at 9% compounded monthly?

How long will it take $10,000 to grow to $12,000 if it is invested at 9% compounded monthly? To solve an equation with an unknown in the power, we need to use the “logarithm”: ln 1.2 = ln(1.0075)n ln 1.2 = n ln(1.0075) ⇒ n = ln 1.2 ln 1.0075 = 24.4 Therefore, it will take 25 months for $10,000 to grow to $12,000.

How many years will it take for an initial investment of $30000 to grow to $75000?

Answer and Explanation: Therefore, it takes 6.5 years for the initial investment to grow to $75,000.

Is it possible to make 10k a day?

Making $10,000 a day regularly is not realistic. Most people who attempt to do this will likely fail. In spite of that, the right combination of skills, experience, patience, and luck can help you achieve this goal.

Is a million by 40 good?

You may be eager to retire at age 40 so you're not tethered to a job you don't like, or a job you do like but takes up most of your time. But if you have $1 million saved by age 40, it means you're in a prime position to embark on a career shift that allows you to enjoy life without quitting the workforce entirely.

Can I get rich at 40?

While becoming a millionaire after 40 requires effort and sacrifice, it's possible in less than a decade through smart budgeting, higher earnings, disciplined saving and calculated risk taking.

Do investments really double every 7 years?

Let's say your initial investment is $100,000—meaning that's how much money you are able to invest right now—and your goal is to grow your portfolio to $1 million. Assuming long-term market returns stay more or less the same, the Rule of 72 tells us that you should be able to double your money every 7.2 years.