Money Doubling Time Calculator



Formula

To calculate the time it takes for money to double using compound interest:

\[ t = \frac{\ln(2)}{\ln(1 + r)} \]

Where:

What is Money Doubling?

A Money Doubling scheme is a type of investment scam where the fraudster promises to double the investor's money in a short period of time. These schemes often involve high-risk investments or illegal activities, and they rely on the continuous flow of new investments to pay off the earlier investors. The scheme collapses when there are not enough new investors to pay the promised returns, leaving the later investors with significant losses.

Example Calculation

Let's assume the following value:

Step 1: Convert the annual interest rate from percentage to decimal:

\[ r = \frac{5}{100} = 0.05 \]

Step 2: Calculate the time to double the money:

\[ t = \frac{\ln(2)}{\ln(1 + 0.05)} \approx 14.21 \text{ years} \]