Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

expert

97% Recommendation Rate

389 Meetings

USD 239 / Coaching

2

# Calculating the value of the land

I understand the solution of how to calculate the value of the land but how would you calculate this in the interview without a calculator? Am I missing a trick?

100,000*(1.04)^54=831,381.43

Thanks!

I understand the solution of how to calculate the value of the land but how would you calculate this in the interview without a calculator? Am I missing a trick?

100,000*(1.04)^54=831,381.43

Thanks!

• Date ascending
• Date descending

Hi,

It's easy if you know the Rule of 72 (and I recommend learning one for the interview). The rule of 72 helps you to calculate how many times the investment actually doubles:

1) 72 / 4 = 18 - you divide 72 or 71 or 70 by the % growth

2) 54 / 18 = 3 - you divide years by the number you got in 1

3) 1000*(2)ˆ3 = ±800k - you double the investment exactly the number of times you got in 2

Best!

Best!

Hi,

It's easy if you know the Rule of 72 (and I recommend learning one for the interview). The rule of 72 helps you to calculate how many times the investment actually doubles:

1) 72 / 4 = 18 - you divide 72 or 71 or 70 by the % growth

2) 54 / 18 = 3 - you divide years by the number you got in 1

3) 1000*(2)ˆ3 = ±800k - you double the investment exactly the number of times you got in 2

Best!

Best!

1.04^54 = 1.04^(2*3*3*3) = ((( 1.04^2 )^3) ^3)^3

1.04^2 = 1.08

1.08^3 = 1.26

1.26^3 = 2

2^3 = 8

100k * 1.08^54 = 100k * 8 = 800k (approximation)

1.04^54 = 1.04^(2*3*3*3) = ((( 1.04^2 )^3) ^3)^3

1.04^2 = 1.08

1.08^3 = 1.26

1.26^3 = 2

2^3 = 8

100k * 1.08^54 = 100k * 8 = 800k (approximation)