Compound Interest
The key Rule of Seventy-Two
Will be of interest to you
If you want to know
How your savings grow
To double true value anew
Alan Grace
4 October 2017
If you want to know how many years it will take your savings to double (and then double again … ), the Rule of 72 gives the answer.
Interest rate % P.A. |
Years to double |
1 |
72 |
2 |
36 |
3 |
24 |
4 |
18 |
6 |
12 |
8 |
9 |
9 |
8 |
12 |
6 |
18 |
4 |
24 |
3 |
Actually if should be 69 (69.3) or 70 [because ln(2) ~ .693] but 72 is used because it can be divided by more whole numbers. See: https://betterexplained.com/articles/the-rule-of-72/
Daily prompt: Interest