作者: 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。
Years to double = 72 / Interest Rate This formula is useful forfinancial estimatesand understanding the nature of compound interest. Examples: At 6% interest, your money takes 72/6 or 12 years to double. To double your money in 10 years, get an interest rate of 72/10 or 7.2%. If your...
72 ÷ 8 = 9 years Here is a graph showing $1 doubling at different interest rates.510152025123tAr = 3%r = 12%Open image in a new page The growth of A=$1A=$1 at 3% (the slowest growing), 5%, 8%, 10% and 12% (the fastest growth), showing (with a pink dot) when it ...
How to Use the Rule of 72 to Estimate Compound Interest Like most equations, you can move variables around to solve for others that aren’t certain. If you’re looking back on an investment you’ve held for several years and want to know what the annualcompound interest returnhas been; ...
The Rule of 72 is more accurate if it is adjusted to more closely resemble the compound interest formula—which effectively transforms the Rule of 72 into the Rule of 69.3. Many investors prefer to use the Rule of 69.3 rather than the Rule of 72. For maximum accuracy—particularly for conti...
The Rule of 72 applies to compounded interest rates and is reasonably accurate for interest rates that fall in the range of 6% and 10%. The Rule of 72 can be applied to anything that increases exponentially, such as GDP or inflation; it can also indicate the long-term effect of annual ...
An encyclopedia entry for rule of 72 is presented. It can be used to calculate the number of years for the amount deposited to double in value when a sum of money is deposited in a fixed-interest-bearing account. By dividing the fixed interest rate by 72, the number of years is ...
Rule of 72 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...
3 52.3 $80,739 In finance, Rule of 72 is method for estimating 4 62.7 $161,975 an investment's doubling time. The number 72 is 5 73.1 $324,944 divided by the interest percentage per period to 6 83.5 $651,884 obtain the approximate number of periods ...
The "Rule of 72" approximates how many years it will take for your money to double, given a fixed interest rate. The higher the rate, the more you'll earn.