Einstein Finance

No, it is not E=MC^2, look at the mess that one has gotten us into.
I have read a bunch of places that Einstein was the first to quote the rule of 72.

What is the rule of 72? 🖩

OK, this one is really important for compound interest and growth, so pay particular attention to it. If you have an investment M it and it is growing at a rate of G (compounded yearly) if you divide G into 72, that is how long it will take M to DOUBLE in value, hence Einstein Finance

Some examples:

• If you buy a bond at 4% interest yearly growth (compounded), it will take 18 years for this bond to DOUBLE in value (i.e. 72 / 4 = 18 )
• I buy a bond at 2% interest and it will take 36 years for this to double in value.
• Leave your money in your bank account that pays 1% interest, it will take 72 years for it to double in value!

I don’t entirely buy that Einstein thought this up, given that I have a Math degree and this is just straight Math, but let’s just say Einstein did say this, for now.

Find things that grow annually by 10% and your money will double every 7 years! Einstein Finance, a new concept!

---

---