Rule Of 72 Worksheet. It works like this. Rule of 72 quiz worksheet rule of 72 in finance study com wk 6 activity rule of 72 2 1 l a e fund turn mine type nd wk 6 activity rule of 72 2 1 l a e fund turn mine type nd.
The formula can also be used to determine what interest rate you need to double your money in x amount of years. The rule of 72 formula is calculated by multiplying the investment interest rate by the number of years invested with the product always equal to 72. Applying a little bit of algebra we can rearrange the rule of 72 equation to calculate the number of years required to double your money with a given interest rate compounded annually.
The rule of 72 worksheet.
So the rule of 72 means that if you invest a certain amount of money at a certain fixed interest rate you can divide 72 by that number. Brought to you by. At 10 money doubles every 7 2 years and when you divide 7 2 by 10 you get 72. The rule of 72 the rule of 72 is a simple formula method used to determine how long an investment your money will take to double given a fixed annual rate of interest.
