Calculating compound interest is complicated. Luckily, there’s a simple shortcut that helps you estimate how a fixed interest rate will affect your savings: the Rule of 72. The Basics The Rule of 72 is a tool used to estimate how long it will take an investment to double at a given interest rate, assuming a […]
What is Interest?
Interest plays a role in almost all aspects of personal finance, including savings, investing, credit, and loans. Interest is money that’s added to your starting balance. It can be earned or paid and is typically expressed as a percentage. You earn interest by keeping money in a bank account, purchasing a bond, or making other […]