How is the Rule of 72 a helpful tool?

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Personal Financial Planning

ISBN: 978-1259277184

2nd edition

Authors: Lewis J. Altfest

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Question Posted: May 05, 2017 10:13 AM

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What is the Rule of 72?
Rule of 72 Earlier, we discussed the Rule of 72, a useful approximation for many interest rates and periods for the time it takes a lump sum to double in value. For a 10 percent interest rate, show...
A useful rule of thumb for the time it takes an investment to double with discrete compounding is the Rule of 72. To use the Rule of 72, you simply divide 72 by the interest rate to determine the...
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How is the Rule of 72 a helpful tool?

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The Rule of 72 is a simplified way to determine how long an investment will take to double ...View the full answer

Personal Financial Planning

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