What Is Rule of 72? | Example and When to Use
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financestrategists.com
What Is Rule of 72? | Example and When to Use
The Rule of 72 is a finance shortcut to quickly estimate how long an investment will take to double. The Rule of 72 is simply this: divide 72 by the rate of return an investment earns. This is the number of periods it will take the investment to double in value.
924 viewsJun 2, 2020
Rule of 72 Explained
📘 What is the Rule of 72? ____________________________ The Rule of 72 is a quick mental math shortcut to estimate how long it takes for an investment to double given a fixed annual rate of return. 💡 Examples Example 1: Savings Account - Annual interest rate: 6% - Calculation: 72div 6=12 - Result: Your money will double in about 12 years. Example 2: Stock Investment - Annual growth rate: 9% - Calculation: 72div 9=8 - Result: Your investment doubles in roughly 8 years. Example 3: High-Interest L
1:48
📘 What is the Rule of 72? ____________________________ The Rule of 72 is a quick mental math shortcut to estimate how long it takes for an investment to double given a fixed annual rate of return. 💡 Examples Example 1: Savings Account - Annual interest rate: 6% - Calculation: 72div 6=12 - Result: Your money will double in about 12 years. Example 2: Stock Investment - Annual growth rate: 9% - Calculation: 72div 9=8 - Result: Your investment doubles in roughly 8 years. Example 3: High-Interest L
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