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Comparing simple and compound interest and the Rule of 72

232. As a consultant, a client is asking you about simple and compound interest, and "Rule of 72". Compare and contrast simple and compound interest and describe why this is important. Also, your client wants to know more about "Rule of 72". How would you define this rule and discuss whether this is an accurate and useful rule. Use resources from the virtual library to support your stance. Do not solely rely on your opinion. Your client wants an objective assessment.

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232. As a consultant, a client is asking you about simple and compound interest, and "Rule of 72". Compare and contrast simple and compound interest and describe why this is important. Also, your client wants to know more about "Rule of 72". How would you define this rule and discuss whether this is an accurate and useful rule. Use resources from the virtual library to support your stance. Do not solely rely on your opinion. Your client wants an objective assessment.

Simple interest is interest paid ...

Solution Summary

An explanation of the difference in simple and compound interest rates and why one is more preferable. Also, an explanation of the Rule of 72 and its value.

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