Latest Articles

Home Business Solutions - 60 Minute Money
You would be working from your home around your existing schedule. You would earn an income commensurate with what you produce and not what a traditional corporate structure, politics or your educational background dictates. The advantages to this...

How to import with no money down
information on how to hedge risks of importing in order for your banker to facilitate the financing of the transaction. ow to finance your International Trade with no money down. A practical guide. - by Shaun Beecham - © Shaun Beecham All...

Making Money from Personal Collections
Most people have some sort of collection, or at least have had at some point in their lives. Some of these collections are very basic and were designed to be something to help pass some time, but others are quite in-depth and show all of the...

Double Your Money Calculator

There is an easy way to estimate how long it will take an investment to double. It is called “The Rule of 72”. It is not exact but pretty darn close.

All you have to know is how much interest your investment is earning. Do a little simple math and you will have your answer.

Let me explain. Let’s say you put $1,000 in the bank and it is earning 4% interest. How long do you think it will take to double? If you said 13 years, you are absolutely correct! All you have to do is divide the number “72” by the interest rate and you will have the amount of years it takes to double your money.

You can also use this in reverse. If you

wanted to know what interest rate you need to double your money in 12 years all you have to do is divide 72 by 12. You will see that you need to earn 6% in order to double your money in 12 years.

Here is a simple chart you can use if you don’t like doing math:

Percentage RateYears to Double
1%72
2%36
3%24
4%18
5%14.4
6%12
7%10.28
8%9
9%8
10%7.2
11%6.54
12%6

There you have it. A simple way of calculating how fast your money will double

About the Author

Larry Westfall is the owner of DIY Investing - http://www.pennystockebook.com
Written By: Larry Westfall

Custom Search