Learning the Rule of 72

Karen Hodgens of Kidnexions put together a nice video presentation to understand the rule of 72.

The rule of 72 is widely known as a quick way to compute the doubling time of an investment. As Karen explains:  Take the number 72 divide it by the interest rate to find out the number of years it takes to double your initial investment at that given rate.   The formula looks like this:

72 / i (interest rate) = y (years)

The rule of 72 also works in another way.  If you want to know how much of a return you need to double your investment in say 10 years, the calculation works like this:

72 /  10 (years) = 7.2 (%)

Great example - thanks Karen!