Try pluggin the numbers using the Rule of 72!
The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
(We're assuming the interest is annually compounded, by the way.)
As you can see, the "rule" is remarkably accurate, as long as the interest rate is less than about twenty percent; at higher rates the error starts to become significant.
You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.
You get the point! With the levels of return available in many penny plays, compounding results happen in days, hours and sometimes...minutes!!!
Aaaaarrrrggghhh! GO FFGO!!!!!
KyBourbon
