In finance, the Rule of 72 is a formula that estimates the amount of time it takes for an investment to double in value, earning a fixed annualrate of return. The rule is a shortcut, or back-of-the-envelope, calculation to determine the amount of time for an investment to double in...
Rule of 72:The principle that the approximate number of years necessary for an investment to double is 72 divided by the stated interest rate. 72法则:投资翻倍所需的大致年数是72除以规定的利率。
The Rule of 72 is a simple equation to help you determine how long an investment will take to double, given a fixed interest rate. It’s a shortcut that you, as an investor, can use to estimate if an investment will double your money quickly enough to be worth pursuing. When you see...
Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double. As you can see, a one-time contribution of $10,000 doubles six more times at 12 percent than at 3 percent....
While the rule of 72 is a useful rule of thumb to estimate investment returns, using an online calculator or a compound growth formula may yield more accurate results.
The Rule of 72 will allow you to determine how long it will take for an investment to double given a specific rate of return. The rule works as follows: Divide 72 by the rate of return, and the result will be an estimate of the number of years it takes to double your investment. ...
A definition of the business term "rule of 72" is presented. Rule of 72 refers to a rule of thumb that says how many years it will take for an investment to double for a given annual compound return. The number of years is determined by dividing the interest rate into 72. In ...
For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72 ÷ 10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double (1.107.3= 2). ...
The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annualrate of return. Alternatively, it can compute the annual rate of compounded return from an investment, given how many years it will take...
A way to estimate how long it takes to double the value of an investment. You divide 72 by the interest rate to get the number of years. Examples: • For an annual rate of 8%, divide 72 by 8, for a result of 9 years. So at 8% it takes about 9 years to double your ...