Presentation is loading. Please wait.

Presentation is loading. Please wait.

Rule of 72 The answers can be easily discovered by knowing the Rule of 72 The time it will take an investment (or debt) to double in value at a given interest.

Published byJoaquín Marín Modified over 5 years ago

Similar presentations

Presentation on theme: "Rule of 72 The answers can be easily discovered by knowing the Rule of 72 The time it will take an investment (or debt) to double in value at a given interest."— Presentation transcript:

1 The Rule of 72 The most important and simple rule to financial success.

2 Rule of 72 The answers can be easily discovered by knowing the Rule of 72 The time it will take an investment (or debt) to double in value at a given interest rate using compounding interest. 72 = Years to Interest Rate double investment (or debt)

3 What the “Rule of 72” can determine
How many years it will take an investment to double at a given interest rate using compounding interest. How long it will take debt to double if no payments are made. The interest rate an investment must earn to double within a specific time period. How many times money (or debt) will double in a specific time period.

4 Things to Know about the “Rule of 72”
Is only an approximation The interest rate must remain constant The equation does not allow for additional payments to be made to the original amount Interest earned is reinvested Tax deductions are not included within the equation

5 Assignment Now let’s practice! Use handout A1

Download ppt "Rule of 72 The answers can be easily discovered by knowing the Rule of 72 The time it will take an investment (or debt) to double in value at a given interest."

Similar presentations

The “Rule of 72” Lesson Objectives: Understand compounding interest

The “Rule of 72” Lesson Objectives: Understand compounding interest
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.

© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.
© Family Economics & Financial Education – Revised March 2009 – Savings Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.

© Family Economics & Financial Education – Revised March 2009 – Savings Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.
Saving and Interest February 2014. Saving and Interest An Equation to define Savings: – SAVING = Disposable Income – Consumption. Interest: – Simple Interest.

Saving and Interest February Saving and Interest An Equation to define Savings: – SAVING = Disposable Income – Consumption. Interest: – Simple Interest.
Carl Johnson Financial Literacy Jenks High School The Rule of 72.

Carl Johnson Financial Literacy Jenks High School The Rule of 72.
© T Madas. £10000 are invested in a building society account. The account pays an annual interest of 8%. Calculate the amount in this account in 6 years.

© T Madas. £10000 are invested in a building society account. The account pays an annual interest of 8%. Calculate the amount in this account in 6 years.
Section 6.7 Compound Interest. Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously.

Section 6.7 Compound Interest. Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously.
2.4.5.G1 © Take Charge Today – March 2014 – Rule of 72– Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer.

2.4.5.G1 © Take Charge Today – March 2014 – Rule of 72– Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer.
1 Learning Objectives for Section 3.2 After this lecture, you should be able to Compute compound interest. Compute the annual percentage yield of a compound.

1 Learning Objectives for Section 3.2 After this lecture, you should be able to Compute compound interest. Compute the annual percentage yield of a compound.
How are Albert Einstein and the Rule of 72 related?

How are Albert Einstein and the Rule of 72 related?
INTRO TO INVESTING Personal Finance.

INTRO TO INVESTING Personal Finance.
5.5 Simple Interest I can find simple interest.. Simple interest formula.

5.5 Simple Interest I can find simple interest.. Simple interest formula.
Q1 The following expression matches the interest factor of continuous compounding and m compounding. Plug r=0.2, m=4 to get x=0.205.

Q1 The following expression matches the interest factor of continuous compounding and m compounding. Plug r=0.2, m=4 to get x=0.205.
Summary of Previous Lecture Corporation's taxable income and corporate tax rate - both average and marginal. Different methods of depreciation. (Straight.

Summary of Previous Lecture Corporation's taxable income and corporate tax rate - both average and marginal. Different methods of depreciation. (Straight.
4-3: Common and Natural Logarithms

4-3: Common and Natural Logarithms
 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.

© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.
INVESTING. Conclusion The Rule of 72 can tell a person: How many years it will take an investment to double at a given interest rate using compounding.

INVESTING. Conclusion The Rule of 72 can tell a person: How many years it will take an investment to double at a given interest rate using compounding.
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.

© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Rule of 72 Funded by a grant from Take Charge America, Inc. to the Norton.
2.9 PERCENTS I can solve percent problems using proportions or the percent equation.

2.9 PERCENTS I can solve percent problems using proportions or the percent equation.

Similar presentations

Ads by Google