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How to read compound interest tables11/1/2023 In order to find the number of years required to double your money at a given interest rate, simply divide the interest rate into 72. It’s not perfect, but it derives a good approximation. The ‘Rule of 72’ is an interesting way to calculate an approximation for the % return is required to double your money in a certain number of years, given annual compounding. =33102.04 The Rule of 72 – calculating compound interest in your head For example, if your starting investment is £10,000, you would enter ‘-10000’.įor example, the below formula calculates the future value of a £10,000 investment in 20 years time assuming a 6% interest rate and 12 compounding periods per annum. nper – To get the number of periods, multiply the number of compounding periods by the number of years.5%) and divide by the number of compounding periods per year. Rate – To get the period rate, take the interest rate (e.g.READ ALSO: What is working capital in finance?
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