#WHATS 7 YEARS FROM NOW PLUS#
If you want to know more, see this explanation of why the rule of 72 works. Apples new iPhone 14 and iPhone 14 Plus may look similar to last years iPhone 13 line, but there are a lot of new changes on the inside. Some holidays and dates are color-coded: Red Federal Holidays and Sundays. calculator works, let us discuss what is actually meant by the future value. You can also get a simple estimate for other growth factors, as this calculator shows: There's nothing sacred about doubling your money. It's good to practice with the rule of 72 to get an intuitive feeling for the way compound interest works. If you graph these points, you start to see the familiar compound interest curve: The rule of 72 tells you that your money will double every seven years, approximately: Now that you know about inflation, you can start working on strategies for beating it.
#WHATS 7 YEARS FROM NOW HOW TO#
Suppose you invest $100 at a compound interest rate of 10%. Wondering how to calculate the inflation rate in a given year. Where Y and r are the years and interest rate, respectively. Plan your visit to coincide with an event, and don’t forget to book ahead Classes, lessons, workshops & talks. You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent. Greenwich Mean Time (GMT / UTC +0), world clock, time zone converters and meeting planner. No matter what time of year you visit Shellharbour there will be a festival, event, market, show or something special going on. (We're assuming the interest is annually compounded, by the way.)Īs you can see, the "rule" is remarkably accurate, as long as the interest rate is less than about twenty percent Īt higher rates the error starts to become significant. 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.įor 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. 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. Have you always wanted to be able to do compound interest problems in your head?
The Rule of 72 (with calculator) - Estimate Compound Interest
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