Money Magnets

Double your savings! (Rule of 72)

Do you know when your savings will double? Follow the rule of 72. Here's the formula:

years to double = 72 / interest rate

This is just an estimate by the way, but a very good one. Example: If your bank is offering 6% interest per annum then it would take exactly 12 (72/6) to double your money. You can use the formula backwards to compute for the interest rate given a particular no. of years. Like say you want your money to double in 10 years, then you would have to look for an institution offering 7.2% interest.

Want to know how this formula was derived? Read more here.

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2 comments:

1. Anonymous said,

   i'm planning to get my parents a senior citizen health insurance @ fortune care. Why fortune care? because i think this is the only healthcard company offering such senior citizen program. do u think this would be a good idea? i don't really have an idea how this works. i also don't know even its pros & cons. please educate me! thanks a lot! -oxox, encar -

   on July 23, 2009 at 12:59 PM  

   
   
2. Money Magnets said,

   @Anonymous
   
   Hi! I haven't heard of Fortune care. But definitely, getting a health insurance for your parents is good. Try to look for other customers who have availed of Fortune Care's services and ask them about their experience with Fortune care, especially when it comes to claiming premiums. ^^

   on August 3, 2009 at 7:46 PM  

   
   

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