Rule of 72   To determine the doubling rate of compound interest the rule of 72 is helpful. The rule of 72 simply states that the time it takes to double the principle by compound interest may be approximated by dividing the yearly interest rate into 72. This will give a ballpark number to use in comparisons.  For example, earning 7% annually will take about 10 years to double (72/7=10.29) while earning 10% annually will take about 7 years to double (72/10=7.2) Taking this principle one step farther, imagine what would happen if the time period was reduced to one month instead of one year. What if the month was reduced to a week?  You can see that it would quickly create a doubling effect that will build huge wealth rapidly. See the following table for an idea of just how fast the compounding effect can benefit you.

Time Cycle
...246810121416
035003500350035003500350035003500
135703640371037803850392039904060
236413785393240824235439045484709
337133936416744084658491651845462
437864093441747605123550559096335
538624256468251405635616567367348
639394426496255516198690476798523
740174603525959956817773287549886
8409747875574647474988659997911467
94178497859086991824796981137613301
1042615177626275509071108611296815429
1143465384663781549978121641478317897
12443255997035880610975136231685220760