The rule of 72 is a shortcut investors can use to determine how long it will take their investment to double based on a fixed annual rate of return. To use the rule of 72, divide 72 by the fixed rate of return to get the rough number of years it will take for your initial investm...
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。
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...
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 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). ...
A useful rule of thumb for the time it takes an investment to double with discrete compounding is the ‘Rule of 72’. To use the Rule of 72,you simply divide 72 by the interest rate to determine the number of periods it takes for a value today to double. For example, if...
. Of course, this method is based on a fixed annual interest rate and therefore can’t really be trusted when you apply it to a fluctuating return that you get from a stock market portfolio; however, it does come in handy to estimate the number of years needed to double your investment...
You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent. Years to double your investment Required Interest Rate Exact Answer: % Rule of 72 Estimate: % Y...
The Rule of 72? The Rule of 72, a staple in financial circles for estimating the amount of time required for an investment to double in value, is shown to be quite inaccur... Spitzer, John,S Singh - 《Social Science Electronic Publishing》 被引量: 1发表: 2014年 Elaboration on the ...