Rule of 72

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Rule of 72



 

Time Is Money

The Rule of 72 states that an investment at a particular rate will double in a certain number of years. You can determine how quickly your investment will double by simply dividing 72 by the interest rate you will receive. For example, an investment made at 10% interest will double every 7.2 years (72/10=7.2). 

In the example used previously, if you take one payment of the $1 million lottery winnings, and invest it at 10% for 15 years, at the end of that time the $36,000 payment would have doubled to $145,142 ($36,000 doubled in 7.2 years = $72,000 — $72,000 doubled in another 7.2 years = $144,000 — and so on). 

With the lump sum investment of $250,000, investing it for the same 10% over 15 years, at the end of that time the original investment will be worth $1,007,935 ($250,000 doubled in 7.2 years = $500,000 — $500,000 doubled in another 7.2 years = $1,000,000 — and so on). 

But your payments on your winnings are only $36,000 per year — how do you get the $250,000 to invest to begin with? 

You can sell all or part of your payments for CASH NOW!  And it doesn't have to be lottery winnings!  Our investors buy ANY INCOME STREAM

 

 

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last updated March 24, 2003