Rule of 72
a common formula used to determine the years needed for money to double at compound interest; divide 72 by the interest rate to get the number of years
EXAMPLE:
According to the rule of 72, $10,000 invested at 6 per cent interest doubles to $20,000 in twelve years.
a common formula used to determine the years needed for money to double at compound interest; divide 72 by the interest rate to get the number of years
EXAMPLE:
According to the rule of 72, $10,000 invested at 6 per cent interest doubles to $20,000 in twelve years.