Financial professionals use a super-easy rule of thumb to calculate when an investment will double.
It’s called The Rule of 72.
It’s easier to understand through example than explanation.
If you earn 7.2% in annual compound interest, your money will double in 10 years.
If you earn 10% in annual compound interest, your will double in 7.2 years.
Ready for a curveball?
If inflation is 3.6% per year, when will prices be double what they are today?
That’s right!
20 years!
Who needs financial calculators!?!?
