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The Rule of 72!

By Chris Campbell

Services for Real Estate Pros with Farmers

November 03, 2007 07:41 AM

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.

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Sean Allen

International Financing Solutions - Fort Myers, FL

International Financing Solutions

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

Sean Allen

Nov 03, 2007 07:47 AM

Frances C. Rokicki

Fran Rokicki Realty, LLC - Bolton, CT

Broker-Mentor,CRS

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%.

Nov 03, 2007 08:07 AM

Konnie Mac McCarthy

MacNificent Properties, LLC - Cobb Island, MD

Broker/Owner - VA & MD "Time To Get A Move On!"

Whoa! I never looked at it that way...that's actually depressing

Nov 03, 2007 09:33 AM