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ProfessorGAC

(77,046 posts)
3. A Tip
Sat Nov 28, 2020, 06:26 PM
Nov 2020

The farther one gets from 8-10%, in either direction, the rule of 72 gets worse and worse.
Your 2 weeks of 35% isn't that close to doubling. It would only be around an 82% rise.
Likewise, 3% doesn't double in 24 weeks. It would go up to a bit under 2.04.
The rule of 72 is really convenient for estimations of thing like loan interest, which over the years has typically been 3-12%.
For current bank interest, or exponential disease spread, it gets less & less an accurate estimate.
It's an excellent post, but given your screen name, I figured you'd understand.

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