Does anyone know what the Rule of 72 is?

Does anyone know what the Rule of 72 is?

Posted in the Louisville Forum

Blind squirrel

United States

#1 Oct 27, 2012
This should be taught in schools before you graduate you should know this!!!
Scarecrow

Radcliff, KY

#2 Oct 27, 2012
That's the one that has to do with compound interest.

“Hello”

Since: Jun 08

Location hidden

#3 Oct 27, 2012
Banking?
Blind Squirrel

United States

#4 Oct 27, 2012
sandy63 wrote:
Banking?
related. The rule of 72 is the length of time it takes a lump sum of money to double at a given interest rate. Example if you get a 10% return on your money divide 72/10= 7.2. It takes 7.2 years for a lump sum if money to double. If I consistently get a 10% return $1000 today will be worth $2000 in 2019.
I think it's criminal not to teach this in schools!!!!
Blind Squirrel

United States

#5 Oct 27, 2012
sandy63 wrote:
Banking?
so from the banks point if view..... The average credit card balance is $5800 @ 24% interest. Sooo 72/24= 3yrs. Which means if you aren't paying off your credit card the bank loves you!!!! Your unpaid balance of $5800 turns into them having $11,600 in just 3 years!!! Thank you public school system for keeping the US broke!!!!

“Hello”

Since: Jun 08

Location hidden

#6 Oct 27, 2012
Blind Squirrel wrote:
<quoted text> related. The rule of 72 is the length of time it takes a lump sum of money to double at a given interest rate. Example if you get a 10% return on your money divide 72/10= 7.2. It takes 7.2 years for a lump sum if money to double. If I consistently get a 10% return $1000 today will be worth $2000 in 2019.
I think it's criminal not to teach this in schools!!!!
They dont teach much about banking in schools and they should.
Blind Squirrel

United States

#7 Oct 28, 2012
sandy63 wrote:
<quoted text>They dont teach much about banking in schools and they should.
yep with a little knowledge even a blind squirrel gets a nut every now and then!
Scarecrow

Radcliff, KY

#8 Oct 28, 2012
The banks use it to assess compound interest.
Walleye

Nicholasville, KY

#9 Oct 31, 2012
Yes it's how long it takes a lump sum of money to double!

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