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In finance, the Rule of 72 refers to the method
for estimating an investment's doubling time, or halving time. These
rules are used for compound interest calculations as opposed to simple
interest calculations.
How does it work? The Rule of 72 says that to find the number of years
required to double your money at a given interest rate, you just divide
the interest rate into 72. For example, if you want to know how long it
will take to double your money at 4.5 percent interest, divide 4.5 into 72
and get 16 years.
You can also run it backwards; if you want to double your money in six
years, just divide 6 into 72 to find that it will require an
interest rate of about 12%.
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locations in Sauk City, Lodi and DeForest, Wisconsin, CBB is a community bank
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