Do You Know the Rule of 72? Another important concept in - TopicsExpress

Do You Know the Rule of 72? Another important concept in understanding the power of compound interest is the Rule of 72. Your money will double at a certain point determined by dividing 72 by the percent of interest. Dividing 72 by the interest rate equals the number of years it takes your money to double.* For example let’s say you have $10,000. How fast will in double? At a 3% interest rate the money double to $20,000 in 24 years At a 6% interest rate the money will double to $20,000 in 12 years and $40,000 in 24 years But at 12% it will double to 20K in 6 years, 40K in 12 years, 80K in 18 years and $160,000 in the same 24 years. Which would you rather have? And let’s remember at the bank (we’ll call it 1%) your money won’t double for 72 years! Yikes!!! Who has that kind of time? I can show you this concept and more at your own kitchen table. Call me today to find out how. 734-377-2859 From HMW

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