Rule of 72

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The Rule of 72 approximates the time for an investment to double by dividing 72 by the interest rate. For example, it takes about 72/9 = 8 years if the annual interest rate is 9%. Compare the actual doubling time with the estimate provided by the Rule of 72.

Contributed by: Nilay Gandhi (March 2011)
Open content licensed under CC BY-NC-SA




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