Financial Education

THE POWER OF COMPOUNDING INTEREST

The Rule of 72

72÷4=18
Money doubles every 18 years

72÷8=9
Money doubles every 9 years

72÷12=6
Money doubles every 6 years

Age	4%
29	$10,000
47	$20,000
65	$40.000

Age	8%
29	$10,000
38	$20,000
47	$40.000
56	$80.000
65	$160.000

Age	12%
29	$10,000
35	$20,000
41	$40,000
47	$80,000
53	$160,000
59	$320,000
65	$640,000

The Difference Between $10,000 at 4% versus 12% is $600,000. $600,000 is equivalent to 20 years salary of a person with an annual salary of $30,000.