Smart Finance

Term

Rule of 72

A mental shortcut: divide 72 by the annual rate and you get roughly how many years it takes to double your money. Approximate, and enough to sanity-check promises.

In pesos: At 8%, money doubles in about 9 years; someone promising to double it in 1 year is implying 72% a year.

Where to go deeper

2/4 5 min Read Simple vs. compound interest What compound interest actually is, why time matters more than the amount you start with, and how the same force works against you on a credit card.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.