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单词 Rule of 72
释义

Rule of 72

The time required for a given Principal to double (assuming Conversion Period) for CompoundInterest is given by solving

(1)

or
(2)

where Ln is the Natural Logarithm. This function can be approximated by the so-called ``rule of 72'':
(3)

The above plots show the actual doubling time (left plot) and difference between actual and time calculated using the rule of72 (right plot) as a function of the interest rate .

See also Compound Interest, Interest


References

Avanzini, J. F. Rapid Debt-Reduction Strategies. Fort Worth, TX: HIS Pub., 1990.


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