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The exception proves the rule is a phrase that arises from ignorance, though common to good writers. The original word was preuves, which did not mean proves but tests. [4] In this sense, the phrase does not mean that an exception demonstrates a rule to be true or to exist, but that it tests the rule, thereby proving its value.
An early reference to the rule is in the Summa de arithmetica (Venice, 1494. Fol. 181, n. 44) of Luca Pacioli (1445–1514). He presents the rule in a discussion regarding the estimation of the doubling time of an investment, but does not derive or explain the rule, and it is thus assumed that the rule predates Pacioli by some time.
The Rule of 72 works best in the range of 5 to 10 percent, but it’s still an approximation. To calculate based on a lower interest rate, like 2 percent, drop the 72 to 71.
Using the Rule of 72, your money should double every 10.3 years. So, by age 45, you should have around $200,000 in retirement savings. By age 55, you should have around $400,000.
That is if before the correction you have 9/10 rule holdings to rule applications and you have 9/9 rule holdings to rule applications you have in effect "boosted" the rule strength from 0.9 to 1.0. However if you have 9/10 (same as before) at start and then end up with 87/100 the rule "strenght" has gone down but its universality has gone up.
Continue reading → The post What Is the Rule of 72? appeared first on SmartAsset Blog. After all, these returns may often seem abstract and distant. But being able to determine a time frame for ...
This "Rule of 70" gives accurate doubling times to within 10% for growth rates less than 25% and within 20% for rates less than 60%. Larger growth rates result in the rule underestimating the doubling time by a larger margin. Some doubling times calculated with this formula are shown in this table. Simple doubling time formula:
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