The rule of 72 states that if rate * time = 72, your investment will double. Referring to the example if $1000 grows to $2000 in ten years, you see that this is a double. Thus, rate * time = 72. Plug in the 10 years for time, and the formula becomes rate * 10 years = 72. Thus, rate = 7.2%! Give an example of purchase, or investment or other matter in your personal financial life when this formula would have been a useful tool.

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