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Rule of 72 and Compound Interest

19 Aug 2007 on learning

Albert Einstein once said that Compound Interest and the rule of 72 is...

It is the greatest mathematical discovery of all time How true! Say we have a certain amount of money in the bank and we get interest rates... so how long will it take to double the money? Well it is easy to find out by using the rule of 72. Eg. If the interest rate if 8% per year, just Divide 72 by 8 = 9 years. At 8% per year, our money will take 9 years to double each time. Warren Buffet, one of the world's richest man has been able to get interest rates at over 20% over decades and that's how he has doubled his money every 2-3 years! And finally some links on Compound interest and the Rule of 72: - Web calculator - rule of 72 - duncan will - another site