Rule of 72
Rule of 72 It figures out how long it takes your investment to double What is the Rule of 72? This is a quick way to calculate how long it will take to double your money if it is invested at a particular interest rate. It is all about the power of time. You take the interest rate you expect to earn and divide it into 72. Key Takeaways The rule of 72 is a simple way to calculate how long it will take an investment to double. It is a great mental math shortcut to estimate the effect of any growth rate Investors use this rule when planning for retirement, education, and long-term financial goals. Why Rule 72 Exists? How do you possibly predict how much money you could make from an investment? One way is to look at the interest rate on investments. The problem is that calculating compound interest can get a little complicated, es