Compound Interest Doubling Time Formula

Compound Interest Doubling Time Formula

This following formula is used to calculate the period in which the amount would be doubled using the prevailing interested rate.

Doubling period Formula = ln(2)/r

r= interest Rate

Example

Interest rate =9%

Doubling Period?

Solution

Doubling Period Formula = ln(2)/r

=ln (2)/9%

=ln(2)/.09

=7.70 Years

It takes 7.7 years that an amount would be doubled. for example if 10,000 was invested ,then it would be 20,000 in 7.7 years.