- THE RULE OF 72 -
Double Your Money!
Reduce Your Debt!
The Rule of 72 is a math formula that tells you how long it
will take to double the value of the money you invest:
- Find out your interest rate...
- Second... do the math!
72 / interest rate = years
Example: $100.00 invested at 6% interest rate
72 / 6 = 12 years --> In 12 years $100 will double at
6%!
In order to double your money within a certain amount of
years, you can flip flop the Rule of 72 to find out what percent
rate at which you need to invest:
- Decide the number of years you want to invest...
- Second ... do the math!
72 / years = interest rate
Example: $100 invested for 8 years
72 / 8 = 9 (% interest rate) --> In 8 years $100 will
double at 9%!
Try it! Use the interactive calculator to demonstrate "The Rule of
72"
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The students of the Folsom Lake College SIFE team are
helping people to understand how to invest for your
future