Your invest 20,000 at 7.5% interest for 48 years, How much will it be worth at the end of 48 years?
+37157 Compounded annually would be 20 000 ( 1 + .075)48
Simple interest would be 20 000 (.017)(48) + 20000
+37157 *** edit **** typo fixed
Simple interest would be 20 000 (.075)(48) + 20000
Using "Rule of 72", we get:
72 / 7.5 ==9.6 years - when money doubles
48 / 9.6 ==5 - doublings.
20,000 x 2^5 ==20,000 x 32 ==$640,000 - what $20,000 will grow to in 48 years using "Rule of 72"
The "actual " growth is: $20,000 x 1.075^48 ==$643,630.00 - in 48 years at 7.5% comp. annually.
