20+ Rule Of 72 Worksheet Gif. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling. The rule of 72 is a simplified way to estimate the doubling of an investment's value, based on a logarithmic formula.
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Worksheet will open in a new window. Lets see the rule of 144 worksheet to understand the concept of rule of 114 in much details. The rule of 72 is a great mental math shortcut to estimate the effect of any growth rate, from quick financial calculations to population estimates.
It is a fairly accurate measurement, and more so when using lower interest ratesinterest ratean interest rate refers to the amount charged by a lender to a borrower for any form of debt given, generally expressed as a.
An individual is earning 6% on their money market account would like to estimate how long it would take to double their current balance. With the rule of 72, you can calculate how long it will take your money to double at a given interest rate, if you reinvest the earnings. Rule of 72 refers to an approximate approach of determining that how much time long term investment will take in getting double value at the fixed rate. According to the rule of 72, how
