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What is the rule of 72 in savings and investments?
The rule of 72 is a quick and very accurate method of determining how long it takes for money to double at a specified rate of interest, compounded annually. For example, using the rule of 72 with a compounded interest rate of 6% it would take 12 years to double your money (72 divided by 6). The precise amount of time it takes to double your money at 6% based on the actual computation of compounded interest is 11.9 years. The rule of 72 works very well unless the rate of interest exceeds 20% at which point the error rate starts to deviate substantially from the actual answer. The rule of 72 can also be used to figure out what rate of interest you need to double your money in a specified number of years. For example, if you want to double your money in 5 years, divide 72 by 5 and the interest rate needed is 14.4%.
Interest on home loan comes under which section of incometax rule?
u/s 194A
How is interest on a car loan calculated?
It is typically calculated on a rule of 78s a.k.a sum of the digits method.
What exactly is the finance rule of 72?
The finance rule of 72 basically is a way to find out how long it will take for someone to double their money, given a certain interest rate. E.g. if you had an interest rate of 9% a year on an investment, it will take 72/9 = 8 years to double your initial investment.
Using the Rule of 72 which of these scenarios will give you the most money?
Leaving $1 dollar in the bank at 9% interest for 16 years.
What is a bankers rule?
"Heads I win, tails, you lose". Sucker!
The widely accepted method for calculating the finance charge rebate known as the sum-of-the-digits method has become known as the?
Rule of 78
What rule allows your rights to be read before you are arrested?
This rule is known as the Miranda rule. The warnings are known as Miranda warnings.
Where was Poseidon known to rule?
poseidon was known to rule all of water, though salt is best
What was Qing Rule was know as the rule of?
The Qing Rule was known as a rule of both Peace and Prosperity.
Why should a consumer know and understand the rule of 72?
Rule of seventy two is used to ascertain the period by which an investment would grow by 100%. 72 divided by rate of interest would provide the approximate period by which the investment would become double. As an example, if the rate of interest is 6% per month, the investment would be doubled in ( 72/6) 12 months. Rule of 72 thus is an important tool to know the investment horizon.
Will hobos rule the world by 2020?
It is unlikely that hobos will rule the world. As a group, they show a lack of interest in politics.
What is rule 72?
How long it will take for your money to double/divide the annual interest rate into 72.
What was Domitian's personality like?
Domitian was known to be harsh, autocratic, and suspicious. He was known for his cruelty, especially toward those he perceived as threats to his power. Domitian also had a strong interest in architecture and literature, promoting the arts during his rule.
What is a diagnoses that is also known as a rule out in medical terminology?
A "rule out" is more formally known as a differential diagnosis, or "differential" for short.
What is the horse collar rule known as?
Either the Roy Williams Rule or the Terrell Owens or T.O. Rule.
What is Rihanna known for?
rock and rule
