@learnwithsherlock: Rule of 72. How to do somewhat complex math relatively quickly. #math #maths #Science #stem #facts #todayilearned #themoreyouknow #interestingfacts #mathtok #LearnOnTikTok #EduTok Here is a way you can look like a math genius Do you know about the rule of the number 72 Let’s say there is a savings account with an interest rate of 5%. If you put 10,000 dollars in, how many years would it take you to double your money? The wrong answer is saying it’s 5%, so 20 times 5% is 100% so it takes 20 years. The reason why that is wrong is because of compound interest If you put in 10,000 to begin with, at the end of year 1 you’re gonna have 10,000 plus 5% of 10,000 which is 500 dollars, so you’ll have 10,500 dollars. That means you’re gonna get 5% again on this 10,500 and this repeats every year, you’re getting interest on the interest you’re earning every year. So again I ask the question, how long would it take you to double your money with a 5% account? One way is to open up a spreadsheet and keep multiplying 10,000 by 1 plus 5%, and see in how many years you get to 20,000 I did that for you right here and you can see it’s between 14 and 15 years, so very different from 20 years. And here is where the magic number 72 comes into play, if you wanna know how long it takes for you to double your money, you divide 72 by the interest rate So 72 divided by 5, is 14.4, and as you can see it really closely matches our spreadsheet calculation If this gets 1,000 likes I’ll make a video showing the mathematical proof of why this works.#CapCut

Sherlock

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Friday 07 July 2023 18:56:27 GMT