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
Do you know the Rule of 72?. It's an easy way to calculate just how long it's going
to take for your money to double. Just take the number 72 and divide it by the ...
Apr 25, 2015 ... How long does it take to double your money? You likely can have twice as much
wealth in 10 years, if you invest it in stocks, or 72 years if it ...
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.
Dec 29, 2014 ... We recently posted a list of handy math tricks, and among them is a quick way to
estimate how long it will take to double an investment with a ...
Take a closer look. You are 24 and have $3,000 in savings. You put it in an
account that you expect to earn 8%. According to the Power of 72, it will take 9
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 ...
The rule of 72 gives 72/9 = 8 years, which is close to the exact answer. See time
value of money. The same applies to exponential decay. Thus to determine 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 ...