If you want to know how long it will take to double your money, take the number 72 and divide that number by the interest rate you are getting. So if you deposit $3,000 into an account with a 2% interest rate, 72 ÷ 2 is 36. So in 36 years you will have $6,000.

 

If you have an interest rate of 12%, you will make $6,000 in six years. The higher the interest, the quicker it is.

 
 
Posted by Chris Campbell on 11/03/2007 02:41 PM   Comments (3)  

3 Comments on The Rule of 72!

NOV
03
2007
381,648 Points 1 Featured Post Outside Blog

hhhmmm, That is interetsing. Never heard of the rule of 72 before.

Sean Allen
2:47pm • #1
216,546 Points Outside Blog
Interesting, did you know that you are supposed to put 12% (men) and 10% (women) into your retirement, every year.  Being self-employed, you can add 22% a year.  Interest rate averages 14%.
3:07pm • #2
451,390 Points Outside Blog

Whoa!  I never looked at it that way...that's actually depressing
4:33pm • #3

Leave a response…

(optional)
What does the graphic say?
 
Rainmaker_large

Chris Campbell

Kansas City, MO

More about me…

Farmers

Address: 1401 E 104th St #103, Kansas City, MO, 64131

Office Phone: (816) 285-9483

Cell Phone: (913) 488-4299

Email Me



Links

Archives

RSS 2.0 Feed for this blog

Find MO real estate agents and Kansas City real estate on ActiveRain.