Rule of 72

Do you know the amount of time it will take for an investment to double?  If you know the interest rate, you can approximate by dividing 72 by the interest rate.  

 
This is a very simple example illustrating the power of compound interest.  As an account accumulates, the interest payment is calculated on total in account, including all past interest payments.  (approximations)



Provided by Primerica Financial Services