If your 5,000 dollar principal doubles, you earn 5,000 dollars in interest.

Quick scoop

  • Starting amount (principal): 5,000 dollars.
  • “Doubles” means it grows to 10,000 dollars.
  • Interest earned = Final amount − Principal = 10,000 − 5,000 = 5,000 dollars.

So, no matter the interest rate or time frame, if the only thing you’re told is that your 5,000 dollars doubles , the total interest you’ve earned is another 5,000 dollars.