$5,000 Compound Interest Over 5 Years

Questions about this calculator

What yearly return would double $5,000 in 5 years?

About 14.9 percent a year. That is the rate at which $5,000 reaches $10,000 by year 5.

Is a lump sum of $5,000 better than depositing it monthly over 5 years?

For growth, yes. $5,000 invested at the start reaches $6,744. The same money split into 60 equal monthly deposits reaches only $5,814 at 6 percent because most of it spends less time growing. Monthly deposits suit a budget while a lump sum suits cash you already have.

Is 5 years long enough for $5,000 to double at 6 percent?

$5,000 reaches $10,000 after about 11.6 years. So 5 years falls short. A quick check is to divide 72 by the rate, which gives 12 years.

What if the return on $5,000 over 5 years were one point lower than 6 percent?

At 5 percent the balance after 5 years is $6,417 instead of $6,744. One point higher gives $7,088.