Rule of 72
How long would it take me to double my weight? How long would it take to double my $$?
I’ll spare you the game plan for the former, it’s deliciously gross.
Now the latter… that I’m willing to discuss. The key # is 72.
(click on the bold-faced vocab words:))
If I deposit $500 in a savings account with an interest rate of 5% (yes, not realistic for the times, but a girl can dream) it will be $1000 in … 72/5= 14.4… approximately 14 years!
I’ll be making money other ways in the meantime. But, neat to know about!
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)