THE RULE OF 72 EXPLAINED. The Simple Formula That Controls Wealth
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THE RULE OF 72 EXPLAINED. The Simple Formula That Controls Wealth
Most people work for money their entire lives… but never learn the simple mathematical rule that controls how money grows. It’s called The Rule of 72, and it is one of the most powerful concepts in finance. This simple formula allows you to quickly calculate how long it takes for your money to double through compound interest. In this Real ...
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Financial knowledge is power; Rule 72 is a simple formula created by mathematicians in the 15th century to estimate how long it takes your money to double. You divide 72 by the interest rate to get the number of years. Example: at 8 percent, 72 ÷ 8 = 9 years to double your money. Albert Einstein called compounding the 8th wonder of the world, and Rule 72 shows you exactly why. Learning this little tricks changes your mentality about money. | Claudinha Gadelha
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