You know that the concept of compounding means that your money is making more money even while you sleep. One way to see how powerful this can be is called Rule of 72.
Mathematicians say that you can see how long it will take you to double your money simply by divideing 72 by the interest rate.
You investment 10000
Interest rate : 9%
72 / 9% Interest = 8 years
So in 8 years, your money will have doubled to20,000
72 / 8% = 9 years
72 / 6% = 12 years
72 / 12% = 6 years
The Rule of 72 is the formula that will give you the amount of time it takes for your money to double.
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