(2 votes, average: 2.50 out of 5)
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Guests: Tua Liap Thau, Namsai, Hai Som, Tsheng Tsi, Tshau Tau, Mo· Mo· Gu, Jagung, Bo Mo· Pe·h, Tau Ge·.
We discuss making money and spending money. How do you make them, and how do you spend them!
Rule 72, provide:-
– the loss in real value of a given amount of funds with the particular inflation rate.
– how long it will take to a double a given sum of money invested at a given rate of return.
Formula: 72 / given rate of inflation of return
Eg1:
Mr. A have RM500k, wants to know when he can become a millionaire with the interest of 10%?
72/10 = 7.2 years
Eg2:
A house costs RM150k in year 1990 but increased to RM300k in year 2006, what is the inflation rate for this 15 years?
72/15years = 4.8%
Thank you for the explanation. It’s definitely easier to digest.