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To calculate how many years it will take to double your investment with a 4% interest rate compounded annually, we can use the **Rule of 72** or the formula for **compound interest doubling time**.

The formula for the doubling time $ t $ in years when interest is compounded annually is:

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

where:
- $ r $ is the annual interest rate (expressed as a decimal, so 4% becomes 0.04),
- $ \ln $ is the natural logarithm.

Let's calculate this: 

\[
t = \frac{\ln(2)}{\ln(1 + 0.04)}
\]

I'll compute the result.The doubling time for an investment with a 4% annual interest rate compounded annually is approximately **17.67 years**.

Do you need further explanation or have any questions?

Here are five related questions:
1. How would the doubling time change if the interest rate increased to 6%?
2. What is the formula for doubling time if interest is compounded monthly?
3. How does the Rule of 72 provide an estimate for doubling time?
4. What is the impact of compound frequency on the doubling time?
5. How long would it take to triple an investment at 4% annual interest?

**Tip:** The Rule of 72 is a quick approximation where you divide 72 by the interest rate to estimate doubling time.

If you have $80,000 in a bank account that is paying an interest rate of 4 percent that is being compounded annually, how many years will it take to double your investment if the interest rate stays the same?

Learn how to calculate the time it takes to double your investment with a 4% interest rate compounded annually. This problem demonstrates exponential growth using logarithmic functions and the compound interest formula.

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