It will take the following number of years to double your money. You invest £10,000 and you achieve an investment return of respectively 7.2%, 14.4% and 21.6% per annum. The result is the number of years it will take you to double your money. Basically you divide the interest rate or investment return into the number 72. Interestingly there is a wonderful rule of thumb method for calculating compound interest called the Rule of 72. Whether Einstein actually said it or not is open to debate but it is entirely plausible that he did in fact say it. If you use it to your advantage with your investments, it will make all the difference over the long term. He who understands it, earns it he who doesn’t, pays it.”Įinstein suggested that compound interest can work for you or against you. He said, “Compound interest is the 8th wonder of the world. Albert Einstein once famously said that compound interest is the most powerful force in the universe.
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