Using the finance 72 rule is a simple way to see how much your money will grow over time. It is also useful when you are comparing investments or when you need to know the cost of an item.
The rule of 72 works best with interest rates between 6 and 10%. You can also adjust the rule of 72 to use higher or lower rates. For instance, if you are interested in doubling your money in 10 years, you would need an interest rate of 7.2%.
There are some drawbacks to using the rule of 72 to double your money. The first is that you have to know when you need to double your money. The second is that the rule isn’t very accurate for rates higher than 10 percent. The rule of 72 can also be used to calculate the effect of inflation on your money. You can also use the rule of 72 to determine how much of your current money will be left in a year or two.
There are also a few ways you can increase the accuracy of the rule of 72. For instance, you can multiply your interest rate by three to increase the number of years it takes to double your money. If you have a lot of debt, you may want to refinance it. Another strategy is to find a financial advisor to help you make the most of your investments.