2 ms·
I'm taking this one from Graham's book. 72 / 12.57 ~= 5.73 72 / 13.96 ~= 5.16 72 / 8 = 9 These are rule of thumbs on how many years it'll take for your mone
by mettamage 6y ago
I'm taking this one from Graham's book.
72 / 12.57 ~= 5.73
72 / 13.96 ~= 5.16
72 / 8 = 9
These are rule of thumbs on how many years it'll take for your money to double if you have that rate consistently. So on a 40 year time horizon, one would get:
40 / 5.73 ~= 7 doubles
40 / 5.16 ~= 7.75 doubles
Still way better than 4.44 doubles with 40/9
Hypothetical balances of 10K would be:
10000 * 2^7 = 1,280,000
10000 * 2^7.75 = 2,152,695
10000 * 2^4.44 = 217,056.7
Compound interest is one hell of a drug ;-)