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
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.