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Rule of 72

Filed in archive by andy on March 22, 2005

A: Compound Interest Q: What did albert einsteinlinks think was the most powerful force in the universe?

Hey, if it works for Al it works for me too. The title of this article refers to a great little tool that let's you quickly determine how long it will take to double your money at a given interest rate. Simply divide 72 by the interest rate you expect to receive on an investment. Here's a sample:

At an interest rate of: Your investment will double in:
3% 24.0 years
5 % 14.4 years
7% 10.3 years
10% 7.2 years
12% 6.0 years



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Permalink: Rule of 72
Tags: finance  rule 

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