Not to be confused with 72-year rule. In finance, the rule of 72, the rule of 70 and
the rule of 69.3 are methods for estimating an investment's doubling time.
The rule of 72 is a shortcut to estimate the number of years required to double
your money at a given annual rate of return. The rule states that you divide the
Rule of 72. Have you always wanted to be able to do compound interest
problems in your head? Perhaps not... but it's a very useful skill to have because
it gives ...
Using the Rule of 72 to approximate how long it will take for an investment to
double at a given interest rate.
It is all about the power of time. You take the interest rate you expect to earn and
divide it into 72. If you expect a return of 6%, 72/ 6 = 12, it will take 12 years to ...
How to Use the Rule of 72. The Rule of 72 is a handy tool used in finance to
estimate the number of years it would take to double a sum of money through ...
Jan 25, 2007 ... The Rule of 72 is a great mental math shortcut to estimate the effect of any growth
rate, from quick financial calculations to population estimates.
For example, using the rule of 72, an investor who invests $1,000 at an interest
rate of 4% per year, will double their money in approximately 18 years.
The Rule of 72* gives a rough estimate of the time it takes for it to double. Simply
divide the number 72 by your investment's expected rate of return, and the ...
Compound interest can have a dramatic effect on the growth of a single deposit.
By dividing 72 by your investment return you can determine the amount of time ...