Friday, February 26, 2010

The Rule of 70

Suaku me just learnt something new late last night - The Rule of 70. The Rule of 70 calculates the impact of inflation on your savings, specifically, it tells you the number of years it takes to shrink your savings by half. Assuming the inflation rate is 3.5%, dividing 70 by 3.5 gives you 20 - the number of years it takes to reduce your $100 to just $50. Scary, isn't it?

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