Quick question: Using the rule of 72!

Question

Can I use the phrase "Using the rule of 72 we see that.." in a case interview? Or is it just a math trick that isn't really supposed to be so evidently exposed during calculations?

Answer 1

Hi,

Not sure if I understand your question. You should always provide clarity on the way you are doing the calculations. I strongly recommend telling the interviewer HOW you are going to calculate something before actually starting the calculations. So yes, you should tell this to the interviewer.

Best!

Answer 2

Hi Anonymous,

as mentioned by Vlad, you can definitely mention you are using the rule of 72 - if you don’t, the interviewer will very likely ask you how you managed to calculate so quickly a compound growth. The interviewer may also ask you where the rule comes from, so be sure to review its origin, which is related to the natural logarithm.

Best,

Francesco

Answer 3

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Answer 4

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