V.9:2 (80-81): Calculating Interest With the Rule of 72 by Raymond Rothschild

V.9:2 (80-81): Calculating Interest With the Rule of 72 by Raymond Rothschild
Item# \V09\C02\CALCULA.PDF
$2.95
Availability: In Stock

Product Description

Calculating Interest With the Rule of 72 by Raymond Rothschild

Despite the convenience these days of computers, business calculators and the like, it is often desirable to perform some calculations either mentally or using pencil and paper. After all, one doesn't always have the trusty laptop readily available if you have one at all. Toward this end, I would like to recommend the Rule of 72 when doing certain interest evaluations.

Curiously, I was first introduced to this rule when attending a seminar on estate planning. The presenting lawyer explained that if an amount of money was placed in a bank at compound interest until it doubled, the interest rate times the number of years would approximately equal 72. He dubbed this phenomenon "The Rule of 72."

Despite my interest in mathematical tidbits, I had never heard of this relationship before. Was this rule some quirk of nature, like Fibonacci numbers? Intrigued, I decided to investigate this premise using mathematical techniques. The algebraic calculations involved are shown in the sidebar, "Derivation of the Rule of 72."




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order