RULE OF "72"

By
Real Estate Agent with RE/MAX Advantage Nampa, ID

RULE OF "72"

I've always found the concept of compound interest fascinating!

The Rule of "72" basically calculates that your money will "double" at an exact point by dividing 72 by the % of interest!

72 - 1% interest = 72 years*

72 - 3% interest = 24 years

72 - 6% interest = 12 years

72- 9% interest = 8 years

72- 12% interest = 6 years

72 - 15% interest = 4 years, 10 months

* If you had invested $1,000 and received 1% interest, it would have grown to $2,000 in exactly 72 years.

This is especially important for young people. Time is on their side!

When looking for good investments, seek good counsel and consider Idaho Real Estate in this market! Now is the time to buy!

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Charles Stallions 04/05/2010 04:10 PM
  2. Travis Newton 04/05/2010 04:18 PM
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Ambassador
1,135,404
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Don: Your eyes are open as wide as Albert's. Mine are too because I am trying to wrap my head around the math in your post.

Mar 23, 2010 08:47 PM #1
Rainmaker
342,103
Don Wixom
RE/MAX Advantage Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Melissa, I never noticed that before, I wonder if we're related...?  Thanks for reading!

Mar 23, 2010 09:19 PM #2
Rainer
41,186
Jill Schmidt
Aurora, CO

An excellent rule for  a blog and I agree that it is so important to learn it early.  (that and the 80/20 rule!)

Mar 24, 2010 02:14 PM #3
Rainer
239,020
San Antonio Texas New Homes for Sale
www.sanantoniotexasnewhomesforsale.com - San Antonio, TX

Hi Don,

 

The Rule of 72 is so important.

 

Our school system should educate our students on the Rule of 72

 

Great post

 

 

Thank You

Mar 25, 2010 11:18 AM #4
Rainmaker
419,404
Troy Erickson
Diverse Solutions Realty www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Don - Ahhh yes, the old rule of 72, a good rule to follow.  By the way, are you related to Einstein?  Seems to me you have the same eyes.

Mar 26, 2010 04:11 PM #5
Rainmaker
342,103
Don Wixom
RE/MAX Advantage Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Jill, Yes, The 80/20 Prado Principle, is a good one for sure!

Robert, There are so many life principles that our school system SHOULD teach, it's amazing to me...

Troy, Ah yes, the eyes.. He was my great uncle!  ;)  Brilliant!

Mar 28, 2010 08:52 PM #6
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Rainmaker
342,103

Don Wixom

"Looking out for your next move..."tm
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