Rule of 72

July 8th, 2009

If you want to get a quick estimate on how long it’ll take for you to double your investment the rule of 72 is for you.

By simply taking your rate of return and dividing it into 72 you’ll figure out roughly how long it’ll take to double your money. e.g. If you are getting a 6% return on your investment (compounded), it’ll take about 12 years for you to double your return since 72/6 = 12.

Written by: tim

Categories: Investing

Leave a comment

Feed

http://www.personalfinancetips.com / Rule of 72