Effect of Compounding
The Rule of 72 is a good quick math shortcut to find out the following –
- Time required for an amount to double itself, at a given rate of interest
- Rate at which an amount should grow to double itself in given time
This formula can be applied for “Doubling Problems” related to money, population, etc. which grows at an annual compounded rate.
- To calculate the time; T = 72/R
- To calculate the rate of interest; R= 72/T Read More