Abstract
The ‘rule of 72’ provides a useful approximation of when an investment or debt will double. Students can apply it for an estimate, avoiding mistakes later when using technology for a precise answer. On standardized tests, moreover, such devices may be disallowed. In job interviews, too, quickly approximating the doubling answer demonstrates the impressive problem-solving ability. Illustrations abound online and in traditional media showing how to use it. This is not the same as explaining why it works or the limitations. Inquiring students want to know. This paper combines familiar territories in math and application to provide a relatively simple mathematical explanation.
Publisher
Academia Europea de Direccion y Economia de la Empresa
Subject
Pharmacology (medical),Complementary and alternative medicine,Pharmaceutical Science
Reference14 articles.
1. Garman, E.T. & Forgue, R.E. (2018). Personal Finance, 13th ed., Cengage Publisher. ISBN: 9781337099752.
2. Investopedia (2020). Rule of 72 definition, formula, & calculation, www.investopedia.com, Mar 5.
3. Lewin, C. G. “The emergence of compound interest,” British Actuarial Journal, Cambridge University Press online, Dec. 24, 2019.
4. Lusardi, A. & Tufano. P. (2015). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics and Finance, 14(4): pp. 332-358.
5. McConnell, C.R., Brue, S.L. & Sean M. Flynn, S.M (2021). Economics, 22nd ed., McGraw Hill Education, ISBN 9781260226775.