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Thursday, May 28, 2009

Law 72

When value investment becomes two times bigger? If you invest only once, so there's time where the amount of your investment will be two time. For example, when you invest US$ 10,000 in deposits that provide the interest rate 12% per year (in the roll over each year), your money of US$ 10,000 will be bigger two times in six years.

How is calculated by using the Law 72. Divide the number 72 with the interest rate of the product of your investment. This means:
= 72: 12
= 6 years.
That period of time it takes for your investment can be bigger two times.

Of course, the higher the results of your investment, the more quickly the two of your investment. For example, if you deposit interest rate is 24% per year (in the roll over each year), then your money of US$ 10,000 in two folded within 3 years (72: 24 = 3). Compare the interest rate if you deposit just 12%, which takes 6 years in order to US$ 10,000 convert more bigger two times.
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