Bert, I honestly checked and I can’t find a resource that explains it. How does this work?
It’s called the rule of 72.
If you make an investment that pays 7% and reinvest the earnings at that same rate in roughly 10 years the amount invested will be double.
To double your money at a specific rate divide 72 by the time and you will get the required rate. That is 72/10 years = 7.2 %
Inflation compounded works in reverse. Set the rate for say ten years and the amount owed will effectively cut in half.