Explain the Rule of 72

question 86

Essay

Explain the Rule of 72.

---

Definitions:

Annuity Stream

A sequence of payments made at equal intervals, such as monthly or annually.

Payments Occur

Indicates the instances or periods at which monetary transactions or installments are made.

Perpetuities

Financial instruments that provide an endless stream of equal payments with no expiration date.

Equal Payments

Regular and identical payments made over a specified period, often found in loan agreements or installment plans.