[Yugocean]

The Rule of 72 is a method for calculating the doubling period using rate of return on your savings. You may therefore estimate your savings investment by applying it correctly.

The formula is ( T = 72/r ). In this instance, the information is obtained by dividing the rule number by the interest rate each period. For instance, assuming your investment has an interest rate of 8%. Divide 72 by 8, (72/8 = 9). This means, your investment will double in 9 years.

The Rule of 72 is not entirely accurate, like any general rule. However, it provides you with useful data to aid in long-term savings planning.

[augusta]

i like the whole concept and the idea behind it. it will give one a clue with ones long term investment and it will urge one to do more in terms of saving.