Tag Archives: Rule of 72

Check the “Rule of 72” with a spreadsheet

One of the more amazing things I’ve encountered while studying finance is the Rule of 72. This rule effectively tells you how long it would take to double your money, depending on what interest rate you are earning on it. So if you were earning 4% a year, it would take roughly (72/4) = 18 years to turn $1,000 into $2,000.

But does it really work? Let’s verify with a spreadsheet! Continue reading