3 ms·
Rule of 72 Divide 72 by the periodic interest rate to find the number of periods to double the money. http://en.wikipedia.org/wiki/Rule_of_72 http://en.wikipe
by wallflower 16y ago
Rule of 72
Divide 72 by the periodic interest rate to find the number of periods to
double the money.
http://en.wikipedia.org/wiki/Rule_of_72 http://en.wikipedia.org/wiki/Rule_of_72
- SkyMarshal 16y agoGreat rule, should be the very first thing taught in high school when you get to exponents. Dr. Albert Bartlet of University of Colorado has an excellent lecture on its implications for population growth, environmental degradation, and other big picture problems: http://www.youtube.com/watch?v=F-QA2rkpBSY http://www.youtube.com/watch?v=F-QA2rkpBSY
- enko 16y agoFunny you mention that "rule". It's not very accurate, and becomes less accurate the higher the inflation/interest rate goes. I just worked it out; at 80% inflation it would take 1.18 months to double, not 0.9 like the rule of 72 would suggest. That's a fair difference, and certainly more in line with intuitive expectation. Not that the OP isn't being overly finicky. Both round to 1, and only one significant digit was given anyway. But still.