Compound interest is when interest is earned on a principal sum along with any accumulated interest on that sum. meaning that you're earning interest on interest. it makes your money grows by percent in years.
The equation for compound interest is: P = C(1+ r/n)nt
The Rule of 72 is a rule that investors use to approximate the time it takes for money to double at a given rate of return. It states that if you divide the number 72 by any given rate of return the answer you get is the time it takes for money to double at that given interest
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