This is a discussion on MANAGEMENT GAME..... within the Contests , Quizes and Community Games forums, part of the Quiz , Marketplace and Community games category; Attitude
Attitude matters whatever you do...
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Everything is done for the only purpose and tht is Success...
Keep playing...
Life is a JourneY You have to LivE,
But a DestinY You Can't AchievE.
LovE is a DestinY You want to AchievE,
But You Can't Bear The JourneY.
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Rule of 72.
The Rule of 72 is a formula that is used in investing to approximate the number of years it will take to double money at a given (compound) interest rate. The calculation works by dividing 72 by the interest percentage you will receive, giving the number of years.
Example: an investment gives an interest of 9%. The estimated time in years (t) it will take to double your investment is 72 / 9 = 8 years.
The number of 69.3 or 70 is actually better, but the number 72 has as advantage it is easily divisible by many numbers: 2, 3, 4, 6, 8, 9, and 12 and works OK for most purposes.
The exact number can be derived from the Formula Future Value = Present Value x ( 1 + Interest Rate )t
Suppose the money has doubled, this means that the Future Value then equals 2 Present Value. We can now substititute this in the formula and then cancel the factor Present Value.
This results in 2 = (1 + Interest Rate)t or: t ≈ 0,693147 / Interest Rate
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Re: MANAGEMENT GAME..... -
September 12th, 2007
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