Thursday, June 24, 2010

72法则让你惊叹复利的奥妙 (Compound Interest Rule of 72)




Rule of 72, compound interest is the Greatest Invention because it provides a Systematic Way of Increasing Wealth!

What is the Rule of 72?

It estimates how many how many years it would take for your money to double un value. Just simply divide the number 72 by the Annual Rate of Returns (ARR) you get from savings or investment.

For e.g. if you earn 3% annual returns on your savings, it would take 72 divided by 3 = 24 years for you to double your money. If you earn 3% on $10K, it would  take 24 years for you to double the money to $20K. However, if you earn 9% annual returns, then only takes about 8 years for you to double youe money.

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