If you are earning 8% on your investment, how many years will it take to double your money?

To determine how many years it will take to double your money at an 8% interest rate, you can utilize the Rule of 72, a simplified way to estimate the time required for an investment to double at a fixed annual rate of return. The Rule of 72 states that you can divide 72 by the annual interest rate to get an approximate number of years to double your investment.

In this case, you would divide 72 by 8 (the interest rate):

72 ÷ 8 = 9 years.

This calculation shows that it will take approximately 9 years to double your money with an 8% rate of return. This approximation is useful as it provides a quick estimation without requiring complex calculations, making it handy for investors and financial planners.

While it's important to note that actual calculations can provide more precision, especially with compounding effects considered, the Rule of 72 gives a very close estimate, confirming that the answer of 9 years is indeed accurate.