Have you heard of The Rule of 72?
There’s an easy rule you can use to work out how your savings or investments can grow with compound interest.
The result tells you how long it will take for your money to double without further savings.
How it works??
Just divide 72 by the interest rate (or average annual return).
For example, you have RM10,000, let's say you are earning 6% interest.
So, 72 divided by 6 = 12.
Every 12 years your RM10,000 will double, so:
After 12 years you have RM20,000
After 24 years you have RM40,000
After 36 years you have RM80,000
If the interest rate is 10%, then 72 divided by 10 equals 7.2.
Any amount of money will double itself in 7.2 years!!!
Just use any amount of money, and the prevailing interest rate.
You'll be amazed at the power of compounding interest!!
Haha..should you start saving now???
5 comments:
but i think the interest wont be that high. mayb just 3%+ ...is take 72 devide by 3 = 24. 24 years... too long.
i think the interest now wont be so high. mayb just 3%++. take 72 devide by 3 = 24. 24years....i think it's too long...
i think the interest now wont be so high. mayb just 3%++. take 72 devide by 3 = 24. 24years....i think it's too long...
hm nice 1...while u talking this "rule of 72" i would like to introduce "rule of 9" too.
any1 of u heard bout the power of "9"
er...it is ntg related to econs...
1st, use "9" subtract with any number, after that add up every digit. As result u will get 9 again.
Examples,
9x1= 09 >> 0+9=9
9x2= 18 >> 1+8=9
9x3= 27 >> 2+7=9
......
9x111= 999 >> 9+9+9= 27 >> 2+7= 9
9x16489= 148401 >> 1+4+8+4+0+1=18 >> 1+8=9
i think this is wat they call..."numbers magic" hehe...
this is so cool...thanx alot ...
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