SME Toolkit Logo
Partner Logo
Home  > Compound Interest Basics. Rule of 72.
 Share  Print Version  Email

Compound Interest Basics. Rule of 72.

Provided by Khan Academy

Compound Interest accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt. Compounding of interest allows a principal amount to grow at a faster rate than simple interest, which is calculated as a percentage of only the principal amount.  This tutorial gives an introduction to this fundamental concept. 

Introduction to Compound Interest:

This video will explain the Rule of 72. The rule of 72 is commonly used for a mental calculation of an investment's doubling time. It applies to exponential growth and is therefore used for compound interest as opposed to simple interest calculations. It can also be used for decay to obtain a halving time.

The Rule of 72 for Compound Interest:

Copyright © 2016 Khan Academy. All Rights Reserved.

 Share  Print Version  Email
Comments & Ratings (2) Overall  
  • Currently 5.0/5 Stars.
If you are a human, do not fill in this field.
Click stars to rate.
   Comments are truncated at 1000 characters
What Others Are Saying
Sort by
  • Currently 5.0/5 Stars.
Bryan Roland  |  March 10, 2017
LOAN OFFER!!! We are Barclays Loan Service we Provides both long and short term loan financing. We offer secure and confidential loans at a very low interest rate of 2% per year, Personal loans, Debt Consolidation Loan, Venture Capital, Business Loan, Corporate Loans, Educational Loan, Home Loan and Loans for any reason! We are the trusted alternative to bank financing, and our application process is simple and straight forward. Our loan ranges from $5,000.00 to $25, 000,000.00. (Twenty Five Million Dollars). Additional Info: We're fast becoming the private, discreet, and service oriented lending choice for general loans. We're the company to turn to when traditional lending sources fail. If you are interested do not hesitate to contact us with information’s below by Email, Warm Regards, Mr. Roy Smith, Head, Loans Application Department, BARCLAYS LOAN SERVICE, Email: