Law of 72
Divide 72
into the interest rate to
find out how many years it will take to double your money.
- 72 divided by 4 = 18
- 72 divided by 6 = 12
- 72 divided by 8 = 9
- 72 divided by 10 = 7.2
- 72 divided by 15 = 4.8
Which would you rather
have?
Compare $10,000 invested over 20
years growing at different
interest rates:
-
4% = $22,005
- 6% = $32,610
- 8% = $48,295
- 10% = $71,478
- 15% = $189,942
What if I saved money?
Take it a month at a time,
$200 invested each month for 20 years.
-
4% = $71,830
- 6% = $90,241
- 8% = $114,686
- 10% = $147,349
- 15% = $287,708
Your total contributions $47,200
