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...
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 ...
Rule of 72 A rule of thumb estimating how long it will take for an investment to double. One calculates this by dividing 72 by the rate of return. The rule of 72 is not exact, but it provides a quick look at the effects of compounding on an investment. Farlex Financial Dictionary. ...
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 investment to double. you would need to earn 10% per year to double your money in a little over seven years. wouldn't it be great if you ...
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 addition, if an investment growing at 10% a year will take 7.2 ...
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...
running a simple command of “years = 72/return,” where the variable “return” is the rate of return on investment and “years” is the result for the Rule of 72. The Rule of 72 is also used to determine how long it takes for money to halve in value for a given rate of...
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...
The calculation of the Rule of 72 in the MATLAB platform requires running a simple command of “years = 72/return,” where the variable “return” is the rate of return on investment and “years” is the result for the Rule of 72. The Rule of 72 is also used to determine how long ...