The principal was $5,000. This is a mathematical formula that simplifies the mathematical calculation. You can do the long math and get the same result.
If the interest rate is 72%, would it take 1 year to double your money? No, it would take almost a year and a half. At what point does this rule break down?
You have to remember that the Rule of 72's purpose is for you to calculate what to expect when you invest your money. However, the real question is if there's a 72% interest rate.
Its funny because its encouraging people to have investment companies hold their money hostage for a lifetime to make peanuts in returns....dumbest crap ever.
this is what im struggling with as well. increasing 72% in one year doesnt double your money. if i put $1000 into an account and it goes up 72% in one year i would now have $1720. thats obviously not doubling my money in one year.
You cant get 12% on a consistan basis but you can get an av of 12% through out a period of years. There is sonething called Index products. Where you can get sone of the gains of the market without any of the losses. If you want to know more, feel free to email me. Have a nice day.
* in 1.48 min he said 72/4= 18 years to double your money by the time hes's 65 ! he's only 29 if you add 18 years he will be 47 and he will have his money doubled. there 's something not clear there !
Whoa there, you're thinking way too hard into it. Slow down. 72/1% is the interest rate your money is sitting growing in the bank. 72 divided by 1% ROR = years it will take your money to double.
Great question! Growth and compounding interest would be two different things here. If someone bought a stock for $1,000 and it grew by 73.6%, he/she would have $1,736. BUT if somehow they'd found an account which yielded 73.6% compounding monthly, they'd have $2,042.78 by the end of the first year.
Nice video but encouraging people to give their money to investment companies for a lifetime in return for, if you really think about it, hardly any gains...its evil and immorral.
"you were adopted" LMAOOO
AndrewCTV 🤣😂😂😂
Foreal lmao
Yes! This is the best video I've found on the Rule of 72! Thanks for this!
Thanks for watching!
It's crazy to think that a number as random as 72 can tell you how long it takes for something to double without even needing to know your principal.
The principal was $5,000. This is a mathematical formula that simplifies the mathematical calculation. You can do the long math and get the same result.
Right to the topic even with a bit interesting knowledge around it. Thanks a lot!
Glad you liked it!
Holy shit, this s the funniest education I've ever received!
The more entertaining and relatable learning is, the better the progress!
is this what their scribbling down after the pitch on shark tank and dragon den?
1:28 This is exactly what I do in our math class.
best video on rule of 72!
Great video sir g, rules of 72
What program is this animation made in?
+Shrey Thaker One of our highly-skilled video editors made this in-house. The programs he used were Adobe Premiere and Adobe After Effects.
Do you need to reinvest the 4% in order to have right answer???
Very nice! can I promote your video to my site? :) credited to your link source. Thanks
Hi Anecito! Glad you like it, thanks for the kind words! What site would you be featuring it on?
+Anecito Dealca let's chat about this - give me a call at 678-969-9000 (Samuel)
+Alliance Group okay you can send a message at my email address learningtools2015@gmail.com .
Is it the same or similar for debt?
As in $5000 with 25%?
yes, unfortunately it is! Which is why it's so important to pay off your high interest debt -- it can snowball quickly!
tysm, u just helped me out of being grounded :D
If the interest rate is 72%, would it take 1 year to double your money? No, it would take almost a year and a half. At what point does this rule break down?
Compounding _monthly_ it only takes one year to double. Compounding _annually_ it'd take about a year and 4 months.
You have to remember that the Rule of 72's purpose is for you to calculate what to expect when you invest your money. However, the real question is if there's a 72% interest rate.
I'm so glad my teacher sent me this video, I wonder if he watched it this time
I love the humor
Glad you enjoyed!
Its funny because its encouraging people to have investment companies hold their money hostage for a lifetime to make peanuts in returns....dumbest crap ever.
I love Larry
It only works for compounding per annum
The Rule of 72 goes a long way, so it is understandable that we are also looking at a longer period of time for compounding.
I like the voice over artist
Dayum, your savage Alliance Group.
LOOOOOVE THE VIDEO!!!
💞🙌
Very good explanation
72 / 72 = 1. 1 year, is this correct?
this is what im struggling with as well. increasing 72% in one year doesnt double your money. if i put $1000 into an account and it goes up 72% in one year i would now have $1720. thats obviously not doubling my money in one year.
@@sthao1733 72% compounding _monthly_ would turn your $1,000 into $2,000 after one year. 72% compounding _annually_ would give you $1,720.
SUPER COOL
Guys the rule 72 is that if a song exist, there will be a megalovania version
where the HECK can i get 12% on a consistent basis?!!
Stock market
Real estate
Forex
Porn
You cant get 12% on a consistan basis but you can get an av of 12% through out a period of years. There is sonething called Index products. Where you can get sone of the gains of the market without any of the losses. If you want to know more, feel free to email me. Have a nice day.
Don't think I didn't see the "You were adopted" message
* in 1.48 min he said 72/4= 18 years to double your money by the time hes's 65 ! he's only 29 if you add 18 years he will be 47 and he will have his money doubled. there 's something not clear there !
it doubles every 18 years at 4%, so it'd double twice by the time they're 65.
Whoa there, you're thinking way too hard into it. Slow down. 72/1% is the interest rate your money is sitting growing in the bank. 72 divided by 1% ROR = years it will take your money to double.
1:20 “you’re adopted??!???”
so this guy claims he made 73.6 percent interest this year on hos stocks. This means he more than doubled his account this year?
Great question! Growth and compounding interest would be two different things here. If someone bought a stock for $1,000 and it grew by 73.6%, he/she would have $1,736. BUT if somehow they'd found an account which yielded 73.6% compounding monthly, they'd have $2,042.78 by the end of the first year.
@@AllianceGroupLife thanks. Cleared that up.
1:20 Hahahahahaha 🤣🤣🤣
I am not going to wait 18 freaking years to double $5,000 lol. I need quicker money than that.
This is called long term investing sir
I was literally looking for someone else who was on the same page as me. 2 decades to double 5k is asinine.
Yeah, its bs
Dumbest shit ever
Can we have a whole video about your cousin and the back story.........jeez.
Ayo the text message section was mad
Time taken for me to solve with hard way: 58 seconds
Time taken for me to solve with rule of 72: 298 milliseconds
no
BANKKKKKKKKKKKKKK i hate YOUUUUUUUUU
lol you were adopted
You were adopted 💀
*You were adopted*
Hดิฉันไม่ต้องการเปอร์เซ็นอย่างอืนนอกจากพาสเตอร์ริ้งเท่านั้นแล้วทำไม่มันใด้เป็นเซ็นสามสี่เปอร์เซ็นแบบนี้ละคะเพาะดิฉันเป็นเจ้าของบริษัทนะคะไม่ใช้กุ้นส่วนของพวกคุณนะคะ
Where in the world are y’all content creator getting these old high azz make believe azz interest rates from?
Bye
Nice video but encouraging people to give their money to investment companies for a lifetime in return for, if you really think about it, hardly any gains...its evil and immorral.