Friday, December 11, 2009

The Rule of 72 – How Long Will It Take To Double Your Money?

The Rule of 72 is a simple concept, yet it is a very powerful way explaining the amazing way money can compound if you just give it enough time.

Here’s the rule: Your money will approximately double at a point in time determined by dividing 72 by the interest rate you earn

Let’s look at some examples:

72 ÷ 2% interest = 36 yearsAt 2% interest, your money will double in approximately 36 years.
(Meaning it will double 1 time in 36 years)


72 ÷ 4% interest = 18 yearsAt 4% interest, your money will double in approximately 18 years.
(Meaning it will double 2 times in 36 years)


72 ÷ 6% interest = 12 yearsAt 6% interest, your money will double in approximately 12 years.
(Meaning it will double 3 times in 36 years)


72 ÷ 8% interest = 9 yearsAt 8% interest, your money will double in approximately 9 years.
(Meaning it will double 4 times in 36 years)


72 ÷ 12% interest = 6 yearsAt 12% interest, your money will double in approximately 6 years!!
(Meaning it will double 6 times in 36 years!)


I'm so excited to share this information with you. If you have enjoyed the information or feel that it would benefit someone else, please share it. If you have any questions or comments, please feel free to contact me.
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