Learn the Rule of 72
Step 1 of 2: How long does it take my money to double?
This step teaches you how to determine the number of years it will take for
your investment or debt to double in value.
Divide the number 72 by the percentage rate you are paying on your debt, or
earning on your investment. Here are two examples...
You borrowed $1,000 from your friend, who is charging you 6% interest. 72
divided by 6 is 12. That makes 12 the number of years it would take for your
debt to your friend to double to $2,000 if you did not make any payments.
You have a savings account with $500 deposited in it. It earns 4% interest
from the bank. 72 divided by 4 is 18. It will take 18 years for your $500 to
double to $1,000 if you don't make any deposits.
Remember: 72 divided by the Interest Percentage is the
number of years it takes to double.
That is the end of step one. Step two will blow your socks off! We ask
that you tell two friends about this web site due to the value of the
information we are giving you. Then learn
the rest of the rule of 72.