<h1 id="reading-2021-08-14">Reading 2021-08-14<a aria-hidden="true" class="anchor-heading icon-link" href="#reading-2021-08-14"></a></h1>
<h2 id="metadata">Metadata<a aria-hidden="true" class="anchor-heading icon-link" href="#metadata"></a></h2>
<ul>
<li>Ref:: <a href="https://www.intmath.com/money-math/rule-of-72.php">Interactive Mathematics</a></li>
<li>Title:: Rule of 72</li>
<li>Author:: </li>
<li>Year of publication:: 2018</li>
<li>Category:: </li>
<li>Topic:: <a class="color-tag" style="--tag-color: #53fca1;" href="/notes/dAHQA4XNlgopAtRMDy7MF">#topic.investment</a></li>
</ul>
<h2 id="notes-from-reading">Notes from reading<a aria-hidden="true" class="anchor-heading icon-link" href="#notes-from-reading"></a></h2>
<p>Here is a graph showing $1 doubling at different interest rates.
<img src="https://www.intmath.com/money-math/svg/svgphp-of-72-rule-s0.svg" alt="example-72-rule" style="max-width:300px;display:block;margin:0 auto;"></p>
<p>This is a trick that allows us to mentally estimate annual compound interest amounts, where we are interested in doubling our money</p>
<blockquote>
<p>If we want to know how long it will take for our money to double, just divide 72 by the interest rate</p>
</blockquote>
<p>So for example, if the interest rate is 10%,</p>
<p>72 ÷ 10 = 7.2 years</p>
<p>So it will take just over 7 years to double our money</p>

Rule 72

h7b-dendron

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