When people talk about Compound Interest they are referring to the amount of money made solely through interest. Compound Interest is just the formal way of saying "making interest off your interest."
The Rule of 72 is an equation (72/x) used for compound interest. It allows a consumer to calculate the amount of time it takes to double their money, based on the annual interest. Likewise, it allows consumers to determine the required annual interest rate in order to double their money in a specified amount of time
Sunday, April 1, 2007
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