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Time Required to Double the Value of Lump Sum Amount

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At an interest rate of 10% and using the Rule of 72, how long will it take to double the value of a lump sum invested today? How long will it take after that until the account grows to 4 times the initial investment? Given the compounding, shouldn't it take less time for money to double the second time?

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The solution determines the time required to double the value of lump sum amount.

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According to rule of 72,
Time required to double the value of lump sum amount=72/rate of interest=72/10%=7.2 ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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