CadernoEm broto
Money that grows
Compound interest, played with instead of memorised
Anyone who nods at "compound interest" without really feeling it. No finance background needed.
Interest on interest. The formula is short, but it only clicked for me when I could move the numbers myself.
Ver código
The rule of 72
Divide 72 by the yearly rate and you get, roughly, how many years it takes to double.It is an approximation of ln(2) ≈ 0.693, nudged to 72 because 72 divides nicely by 2, 3, 4, 6, 8, 9 and 12. At 6% that is about 12 years: try it above.
Things I want to understand next
Why inflation is compound interest running backwards
How a loan's monthly payment is calculated