Changes

The '''Rule of 72''' is used to estimate [[Interest|compound interest]], specifically how long it takes money to double under a given interest rate. The number 72 is placed into the [[numerator]] and the rate of interest in the [[denominator]]. The quotient is the number of years needed for the money to double, up to a small [[rounding error]].

The '''Rule of 72''' is a rule of thumb used to estimate how long it takes money invested to double at a given interest rate.

 

The number 72 is placed into the [[numerator]] and the rate of interest (as a whole number) in the [[denominator]], with the quotient being the approximate number of years (subject to rounding error).

[[Category:Finance]]

[[Category:Finance]]