Doubling Your Money
Compound Interest
The Rule of 72
When compounding money why go through using complicated logarithms when you can simply divide by a number. This number is 72. Below are the steps on how to do it.
First...
Create a Fraction of 72 and the Interest Rate:
72 (seventy-two)
6 ( so this is 6%)
THEN
SIMPLY DIVIDE
So that means (in this example) your money will have doubled in 12 years!!