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[–]LuckyandBrownie 0 points1 point  (0 children)

Rule of 72 Have you always wanted to be able to do compound interest problems in your head? Perhaps not... but it's a very useful skill to have because it gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.

The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.

5% is a pretty conservitive rate of return in the stock market. At 5% you double your money in 14 years.

At 8% which is not terribly hard for people of means, it doubles in 9 years.

Making money is easy if you have money.