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Rule of 72
A mathematic anomaly & useful calculation for making financial decisions!
Do you want to know how long it takes to double your money – at any given rate of return?
(Or how quickly your debt will double – at any given rate of interest?)
Divide the number 72 by your annual rate. The answer you get will be the # of years it will take to double your money – or double your debt!
72
12% |
= |
6 Years |
72
10% |
= |
7.2 Years |
72
8% |
= |
9 Years |
72
6% |
= |
12 Years |
72
4% |
= |
18 Years |
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