Mmastodon BusinessPersonal Finance first seen 9 d ago, last 9 d ago, peak #3

Rule of 72 back in focus as a quick investing shortcut

Original: Rule of 72, the fastest compound-interest check: divide 72 by the annual return to estimate how many years it takes mone

The rule of 72 is being shared again as a fast mental check for compound interest: divide 72 by an annual return to estimate how many years money takes to double. At 6% that is roughly 12 years, at 8% about 9. The same math works against borrowers — a credit card balance at 24% interest doubles in about three years if left unpaid.

Why now: Rising interest in personal finance basics and high credit card rates make the doubling-time shortcut a timely, practical tip.

Rule of 72compound interestcredit card debt

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Evidence

• Rule of 72, the fastest compound-interest check: divide 72 by the annual return to estimate how many years it takes money to double. 6% → about 12 years 8% → about 9 years It works in reverse for debt too: a card at 24% doubles an unpaid balance in about 3 years. Pay… · smartbudgetsheets · 2

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