Applying a little bit of algebra we can rearrange the rule of 72 equation to calculate the number of years required to double your money with a given interest rate compounded annually. Interest rate actual years rule of 72 1 69 66 72 00 2 35 00 36 00 3 23 45 24 00 4 17 67 18 00 5 14 21 14 40 6 11 90 12 00 7 10.
Rule Of 72 Super Mario Personal Finance Lessons Rule Of 72 Finance Lessons Personal Finance Lessons
How the rule of 72 works.
Rule of 72 worksheet. Rule of 72 key 1. One of the quickest ways to teach your children about financial responsibility is to teach them the famed rule of 72. The printable worksheet can serve as a study guide.
Use this interactive quiz and worksheet to test your knowledge of the rule of 72 in finance. Rule of 72 worksheet free printable reading with questions for grade 7 12 economics pdf file. The rule of 72 formula is calculated by multiplying the investment interest rate by the number of years invested with the product always equal to 72.
72 11 6 5 years 3. Some of the worksheets displayed are rule of 72 the rule of 72 rule of 72 math work chapters 11 12 grammar and mechanics work writing rules es1 saving and investing normal distributions math 728. The exact number of years it takes to double once at a 24 growth rate is 3 2 years which is to say that the rule of 72 is very accurate around 10 but gets less accurate the farther from 10 we go.
How long will it take to double doug s investment. Once you find your worksheet click on pop out icon or print icon to worksheet to print or download. Both parents and kids should learn this little rule of saving and investment.
This table illustrates just how close the rule of 72 is to the actual doubling time. 72 6 5 11 years 2. According to the rule of 72 how often will an individuals investment double.
Children learn best when their parents are good examples of planning for the future and putting their money to work. The rule states that you divide the rate expressed as a. Doug invested 2 500 into a certificate of deposit earning 6 5 0 interest.
The rule of 72 is a shortcut to estimate the number of years required to double your money at a given annual rate of return. For example the rule of 72 states that 1 invested at an annual fixed interest rate of 10 would take 7 2 years 72 10 7 2 to grow to 2. Remember the rule of 72 is an approximation but it s a remarkably accurate one we can use with confidence for our rule 1 calculations.
Worksheet will open in a new window. Nd the accurate doubling time the rule of 72 is useful for mental calculations or when only a basic calculator is available. The average stock market return since 1926 has been 11 0.
Number Sequence Worksheet 19 Math Worksheets Grade 1 Worksheets Pattern Worksheet 1st Grade Worksheets Math Worksheets
Divisibility Rules Worksheet Pdf Divisibility Rules Divisibility Rules Worksheet Divisibility Rules Practice
Rule Of 72 Calculator Rule Of 72 Rules Budgeting Finances
Rule Of 72 Worksheet Free Printable Reading With Questions For Grade 7 12 Economics Pdf File Rule Of 72 Economics Worksheets
The Rule Of 72 Financial Quotes Financial Literacy Budgeting Money
4 Oa 5 Worksheets Pattern Worksheet Math Patterns Number Patterns Worksheets
Input Output Multiplication Worksheets Pre Algebra Worksheets Algebra Worksheets Writing Functions
The Rule Of 72 Finance Investing Rule Of 72 Financial Statement
Pattern Worksheets Number Patterns Worksheets Pattern Worksheet Math Patterns
What S My Rule Input And Output Tables Everyday Math Elementary Math Math Resources
Pin By Mount Lehman Credit Union On The Rule Of 72 Rule Of 72 High Yield Savings Account Compound Interest Money
Rule Of 72 Divide 72 By The Annual Interest Rate To Find The Approximate Time Required For Doubling Rule Of 72 Compound Interest Money How To Find Out
Introduction To Investing Power Point Presentation 1 12 1 G1 Investing Investment Tools Certificate Of Deposit
If You Dont Understand This Basic Money Principle The Magic Of Compound Interest Then You Will Continue To Rule Of 72 Compound Interest Money Financial Planner
Pin By Keisha J On Shesprettyboss Rule Of 72 Compound Interest Money Financial Planner
Zippin Down The Freebie Trail Algebra Worksheets Middle School Math Worksheets Fun Math Worksheets
Exponent Rules Worksheet In 2020 Exponent Rules Exponent Worksheets Quotient Rule
Rule Of 72 An Easy Formula Quick Worksheet For Smart Investors Rule Of 72 Helping People Value Investing
Use The Rule Of 72 To Understand Compound Interest Rule Of 72 Finances Money Finance Investing
