Comments on: Finance? http://financestate.info/finance-2/106/ The state of finance... In today's times. Thu, 08 Apr 2010 17:42:19 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: mule http://financestate.info/finance-2/106/comment-page-1/#comment-144 mule Thu, 04 Mar 2010 23:32:04 +0000 http://financestate.info/finance-2/106/#comment-144 Have you always wanted to be able to do compound interest problems in your head? Probably not, but it's a very useful skill to have because it gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be. The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years. Yes, it is a useful tool and is reasonably accurate. Have you always wanted to be able to do compound interest problems in your head? Probably not, but it’s a very useful skill to have because it gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.

The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.

Yes, it is a useful tool and is reasonably accurate.

]]>