The Rule of 72

Facebook page of investment advocate Aya Laraya posted something interesting the other day, it's called the Rule of 72.

What is the Rule of 72?

Like their page here:

https://www.facebook.com/pesosandsensetv?ref=ts&fref=ts

According to the post from Pesos and Sense:

"WHAT IS THE RULE OF 72?

The ‘Rule of 72’ is one of the simple ways to know how long an investment will take to double, given a fixed annual rate of interest. 

It works by dividing 72 with the annual interest rate of the investment. The answer will give you a rough estimate of how many years required to double your money. (Again, the result is only a rough estimate but this figure will help assess if you really have the time to invest that long.) 

Formula: 72/interest rate = years to double your money

For example, at 6% annual interest, your money will take 12 years to double. 

Take note that this formula only applies for double your money scenarios. (It will NOT work in triple, quadruple, or other growth scenarios.) 

READ MORE >> http://pesosandsense.com/rule-of-72/"