The formula to calculate the Doubling Time (DT) is:
\[ DT = \frac{\log_{10}(2)}{\log_{10}(1 + \frac{\%RoR}{100})} \]
Where:
Doubling Time is the length of time required to double an investment or money in an interest-bearing account.
Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
Let's assume the following value:
Using the formula:
\[ DT = \frac{\log_{10}(2)}{\log_{10}(1 + \frac{\%RoR}{100})} \]
Evaluating:
\[ DT = \frac{\log_{10}(2)}{\log_{10}(1 + \frac{4.5}{100})} \]
The Doubling Time is 15.7473018364856.
| Rate of Return (%) | Doubling Time |
|---|---|
| 1 | 69.66071689357483 |
| 2 | 35.00278878114651 |
| 3 | 23.44977225043774 |
| 4 | 17.67298768512970 |
| 5 | 14.20669908289046 |
| 6 | 11.89566104594188 |
| 7 | 10.24476835105871 |
| 8 | 9.00646834200059 |
| 9 | 8.04323172693205 |
| 10 | 7.27254089734171 |