The Rule of 72


The Rule of 72 tells you either
1) how long it takes for your money to double at a given interest rate
2) how long it takes for prices to double at a given inflation rate

This is done by dividing the rate into 72. e.g.
at 03% interest/ inflation, your money / prices will double every 72/3 = 24 years
at 06% interest/ inflation, your money / prices will double every 75/6 = 12 years
at 12% interest/ inflation, your money / prices will double every 76/12 = 6 years