Financial Trick Shows How To Double Your Money
Q: We’re planning for college for our little ones comparing investments including real estate. I’m looking for something that will double in value over the next decade–any suggestions? Doug, Manasquan, NJ
A: The Rule Of 72 Shortcut to estimate the number of years required to double your money at an annual rate of return. Divide an interest rate into 72 to get the number of years required to double your money or divide the number of years to double your money into 72 to get the annual interest rate required to double your money.
Examples: 9*8, 6*12, 24*3, 36*2 (8 years@9%, 9 years@8%, 6 years@12%, 12 years@6%, 3 years@24%, 24 years@3%, 2 years@36%, 36 years@2%)
Thanks for your question, Doug. For more real estate information and tips visit my blog at geraldlucas.com.