Have you heard about the Rule of 72 ?

💡Imagine you could calculate how long it take to double your money just with a simple formula.

The rule of 72 is really simple and works as explained below
Doubling Time (# years) = 72/Interest Rate

Example:
What is the doubling time for an investment with a compound interest rate of 8%?
A person using the rule of 72 equation would find the doubling time equal to 9 years.
Calculate this by taking 72 and dividing it by 8.
By performing this the investor can tell that it will take approximately 9 years to double the principal.
It is fairly accurate as the exponential function yields an actual doubling time of 9.006 years.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s