1. How long will it take an Investment to double, if interest is \( 8 \% \) p.a compoundo monthly?

To determine how long it takes for an investment to double with a compound interest rate of 8% per annum compounded monthly, we can use the Rule of 72 as a quick estimate. By dividing 72 by 8, we get approximately 9 years as a ballpark figure. For a more precise calculation, however, the formula applicable here is \( t = \frac{\ln(2)}{n \cdot \ln(1 + r/n)} \), where \( n \) is the number of compounding periods per year and \( r \) is the annual interest rate. Plugging in the numbers gives a bit more accuracy, so be ready to grab your calculator! Remember that compounding is a powerful tool! The more frequently interest is compounded within a year, the faster your money grows. Even small monthly contributions can leverage this effect. So, if you’re thinking of doubling your investment, consider how often your interest is applied—it really makes a difference!