Compound interest
A method of calculating interest in which earned interest is added back to the principal so that later interest accrues on the larger balance, making the total grow exponentially over time.
The "Rule of 72" lets you quickly estimate compound interest. Divide 72 by the interest rate to find how many years it takes to double your money. At 6% annual return, 72 ÷ 6 ≈ 12 years to double. The actual result is 2.012×—remarkably accurate.
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