SS - Investing Money

Rule of 72

The rule of 72 is a method of estimating the number of years that are required to double the amount of and investment at a given compound interest rate.

Compounding Interest is re-investing the interest back into the investment and receiving interest on the re-invested interest amounts in the following time periods (years).

Examples

How long will is required to double an investment of $1000 invested at 4% compounded annually?

72 ÷ 4 = 18 years

It will take about 18 years to double the investment at an annual compound interest rate of 4%.

Exercise #1

Create a spreadsheet that demonstrates the rule of 72.

You can follow the above layout

Exercise #2 - Adding Sheets to a Spreadsheet "Book"

Spreadsheet programs, including Google Sheets, allow for one file to hold multiple sheets

Add sheet to your file for each of the following  cases

Note: Copy and Pasting also works between sheets

Right click on the sheet tab and a sheet can be: