![]() Well, using the Rule of 72, I just take 72 / 6, and I Let's say 6% compounding annually, compounding annually, so like that. Similarly, let's say that I am compounding. Is pretty darn close to what we got by doingĪll of that fancy math. If this was 10% compounding monthly, it would be 7.2 months. Its decimal position is 0.1, but it's 10 per 100 percentage. Say how long does it take for me to double my money? I literally take 72. To answer that same question, let's say I have 10% compounding annually, compounding, compounding annually, 10% interest compounding annually, using the Rule of 72, I Continuous compounding, you'll get closer to 69 or 70, but I'll show you what I mean in a second. Talking about compounding over set periods of time, maybe not continuous compounding. Of 70 or the Rule of 69, but Rule of 72 tends toīe the most typical one, especially when you're You to double your money? That rule, this is called the Rule of 72. What I will show you is a rule to approximate this question. As we saw in the last video, this not necessarily trivial to set up, but even if you understand the math here, it's not easy to do this in your head. The logarithm of that, and we close the parentheses, is equal to 7.27 years, We're going to have 2, and we're going to take In order to say, "How long does it take "to double my money at 10% a year?" you'd have to put that in your calculator, and let's try it out. ![]() I say this because most calculators have a log (base 10) function, and this and this are equivalent, and I have proven it in other videos. This is another way toĬalculate log (base 1.1) 2. This, you could also say x = log (base 10) 2 / log (base 1.1) 2. Have a log (base 1.1), and I have shown this in other videos. To solve that equation, most calculators don't ![]() Me to double my money?" and end up with this equation. Where this 1 comes from, "how long does it take for $100 and if I'm compounding "at 10% a year," that's For example, at the end of the last video, we said, "Hey, if I have If you have a reasonable calculator, you can solve for some of these things, if you know how to do it, but it's nearly impossible Although that idea is pretty simple, we saw that the mathĬan get a little tricky. That's why it's calledĬompounding interest. Interest on the interest from previous years. On your initial deposit, but you also get money or To let you understand that although the idea is simple, every year, you get 10% of the money that you started off with that year, and it's called compoundingīecause the next year, you get money not just Our example was interest that compounds annually, not continuously, like we would see in a lot of banks, but I really just wanted The final approved interest rate and loan amount may vary depending on the individual circumstances and the final assessment by the Bank.Talked a little bit about compounding interest, and An existing bank user can get the preliminary approval result in as fast as 30 seconds from starting an application in “Loan” tab after logging into ZA Bank App. In general, provided that all required information is in order, a new-to-bank applicant can get the preliminary approval result in as fast as 90 seconds. The actual completion time varies across individuals. Users are required to submit relevant documents for review before receiving the final result and approval. The APR is a reference rate, which includes the basic interest rates and other fees and charges (if applicable) of a product expressed as an annualised rate. The APR is calculated using the method specified in relevant guidelines issued by the Hong Kong Associations of Banks, and is rounded up or down to the nearest two decimal places. Please refer to the interest rate & monthly repayment table shown during loan application for the applicable monthly flat rate and APR of other tenors. The Annualised Percentage Rate (‘APR’) of 0.99% is calculated based on an example, where the loan amount is HKD1,000,000, with repayment tenor of 24 months and monthly flat rate 0.0428%. “Best offer in town” means that the Annualised Percentage Rate of designated Instalment Loan offered by ZA Bank is lower than the lowest reference rate of personal instalment loan listed on the website of other major retail banks in Hong Kong as of and new bank users can get approval result in 90 seconds, while existing users can get it in 30 seconds.
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