The $5,000 invested should be worth $40,000 in 30 years, 7 months. This is because the money doubles every 10.2 years. After the first 10.2 years the money invested will be worth $10,000. After another 10.2 years (20.4 years in total) the $5,000 investment will be worth $20,000. After a further 10.2 years the invested money will be worth $40,000, i.e three separate periods of doubling. Multiplying 3 by 10.2 (the time taken for the money to double) gives an answer of 30.6 years. This can then be rounded down to 30 years and 7 months.
Interest rates are variable and can go up or down. The reason that interest rates lower at times, is to provide the economy with a boost. This boost is normally short term, as inflation soon rises again and then interest rates have no bearing on the economy.
When investing money, people need to make sure that the investments they are making are safe, as there is always a risk that the company invested in, will go bankrupt or share prices may drop. Investments should therefore be chosen carefully, and most people put their money into safeguarded accounts, that will pay out at least what was paid into the account. In effect, this is just another way of keeping money, without being able to spend it.
If money is invested with the intent of making more money, then this is always liable to be a risk, as there can be no guarantee of a sure thing when it comes to investing money. Careful analysis should always be performed and professional advice should be sought before making any investments, especially long-term investments.
Interest rates are variable and can go up or down. The reason that interest rates lower at times, is to provide the economy with a boost. This boost is normally short term, as inflation soon rises again and then interest rates have no bearing on the economy.
When investing money, people need to make sure that the investments they are making are safe, as there is always a risk that the company invested in, will go bankrupt or share prices may drop. Investments should therefore be chosen carefully, and most people put their money into safeguarded accounts, that will pay out at least what was paid into the account. In effect, this is just another way of keeping money, without being able to spend it.
If money is invested with the intent of making more money, then this is always liable to be a risk, as there can be no guarantee of a sure thing when it comes to investing money. Careful analysis should always be performed and professional advice should be sought before making any investments, especially long-term investments.