Inflation and the Rule of 72
Why cash kept at home shrinks, and a quick trick to see how fast money doubles — or halves.
In the app: 2 lessons · 1 quick check
Key points
1. Inflation eats idle money
- Inflation is prices rising over time. If prices go up 15% in a year, ₦10,000 kept under the mattress buys only what about ₦8,700 bought a year ago.
Keep only what you need for the next few weeks as idle cash. Savings that earn something fight back against inflation.
2. The Rule of 72
- At 12% a year, savings double in about 72 ÷ 12 = 6 years.
- At 15% inflation, idle cash loses half its buying power in about 72 ÷ 15 ≈ 5 years.
For educational purposes only. This is not financial advice.
The full lesson is in the Kopkad app
Worked examples in naira, quick checks to test yourself, and the step-by-step guide to doing it, free with your account.
Read more elsewhere
- Rule of 72Wikipedia
- InflationWikipedia
- Official website: inflation (CPI) reportsNational Bureau of Statistics, Nigeria
External sites, not run by Kopkad.
Full lesson + tools in the Kopkad app
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