What is the rule of 72 & how does it benifit the avg. joe vs. a guartteed ROR?

I must disagree, the rule of 72 greatly benifits the avg. joe's understanding of how money works and how the banks can give that guarntteed ROR

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1 john carlo // May 5, 2008

The rule of 72 allows you to divide your interest rate or rate of return into 72 to determine how long it takes to double your money. For example: a 9% rate of return divided into 72 tells you it should take 8 years to double your money.

I really has nothing to do with a guaranteed ROR except to tell you how long your money will double at that ROR.

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