There are only three factors when calculating how much a deposit or invest will grow to: The Deposit or investment (also known as your money), The time it has to grow (usually in years) and the rate of return (or interest rate earned)
If you know the interest rate then you can calculate the number of year it will take to double if you divide 72 by the rate.
So if you had $10,000 and it was earning 8%, in 9 years it would grow to $20,000.
72/8 = 9
or if you wanted your $10,000 to grow to $20,000 in 6 years you would need to earn 12% per year
72/6 = 12
Here is why Canadians need to find ways to educate themselves on how to invest their money in areas other then bank accounts and GICs. How long do you really have to wait?
$10,000 invested
| 2% | |
| 36 Years | $20,000 |
| 72 Years | $40,000 |
| 4% | |
| 18 Years | $20,000 |
| 36 Years | $40,000 |
| 54 Years | $80,000 |
| 6% | |
| 12 Years | $20,000 |
| 24 Years | $40,000 |
| 36 Years | $80,000 |
| 48 Years | $160,000 |
| 8% | |
| 9 Years | $20,000 |
| 18 Years | $40,000 |
| 27 Years | $80,000 |
| 36 Years | $160,000 |
| 10% | |
| 7.2 Years | $20,000 |
| 14.4 Years | $40,000 |
| 21.6 Years | $80,000 |
| 28.8 Years | $160,000 |
| 37 Years | $320,000 |
| 12% | |
| 6 Years | $20,000 |
| 12 Years | $40,000 |
| 18 Years | $80,000 |
| 24 Years | $160,000 |
| 30 Years | $320,000 |
| 36 Years | $640,000 |
