A very easy method of estimating the number of years it takes for an investment's value to double at a specific interest rate or rate of return. For a complete explanation see Rule of 72.
The rule of 72 shows how long it will take to double the money invested. The formula is used by many financial advisors and is easy to use. Divide the percentage rate of return into 72. The answer should be the number of years it will take to double the investment. One thing to remember, the rule is based on a fixed annual rate of return. Example, a $5,000 investment with a 5% annual rate of return would take 14.4 years to double. Example 5% divided into 72=14.4 years. Example 10% divided into 72=7.2 years. Example 15% divided into 72=4.8 years.
A formula used to determine the amount of time it will take for invested money to double at a given compound interest rate, which is 72 divided by the interest rate.
The estimation of doubling time on an investment, for which the compounded annual rate of return times the number of years must equal roughly 72 for the investment to double in value.
A mathematic shortcut used to approximate the number of years to double one's money simply by dividing 72 by the annual interest rate.
The number of years it takes to double your property value at a given compounded rate of appreciation, e.g., 72/4% rate = 18 years.
Used to determine how many years it will take your money to double. Divide 72 by the annual interest rate.
The formula for approximating the time it will take for a given amount of money to double at a given compound interest rate. The formula is simply 72 divided by the interest rate. In six years, Rs. 1000/- will double at a compound annual rate of 12% (72 divided by 12 equals 6)
This is a basic investment rule that estimates the amount of time it will take to double your money. Take the percentage of interest on your money and divide it into 72. So, if your savings account is earning 5% interest, it will take over 14 years to double your money (72/5 = 14.4 years). But if you invest your money in Tax Lien Certificates at 18% interest, it will take only 4 years (72/18 = 4 years).
Mathematical approximation that the time required to double an investment is about 72 divided by the percent annual return, e.g. 12 years for a 6% return.
math formula that determines the number of years needed to double your money at a given interest rate. Here's how it works: you divide 72 by the interest rate. Therefore, money invested at 10% interest rate will double in 7.2 years.
A convenient technique for either mental or pencil-and-paper estimation of compound interest rates derived from the fact that a 7.2% return per year is the interest rate that will double the value of an investment in ten years. Hence, 'years to double' an investment with a given annual rate of return can be estimated by dividing the rate of return into 72. For example, if an investment's annual return is six percent, its value will double in approximately 12 years (72 divided by six); if an investment's annual return is nine percent, its value will double in approximately eight years (72 divided by nine). Similarly, the rate of return that will double the value of an investment in a given number of years can be estimated by dividing the number of `years to double' into 72. For example, the value of an investment will double in six years if the annual rate of return is approximately 12%.
Divide the number 72 by the percentage rate you are paying on your debt or earning on your investment. This will give you the time it will take in years to double your investment or debt given you make no more deposits or no more payments.
A formula to determine the length of time (in years) that it will take for invested money to double at a given compound interest rate. Simply divide 72 by the interest rate to determine the number of years.
a way to quickly estimate how long it will take an investment to double in value
A formula that answers the question, "How many years will it take my money to double?" based on a particular constant rate of return. Use the following formula: 72 / Annual Rate of Return = Number of Years It Will Take for Your Money to Double.
A shortcut for estimating how long it will take to double your money at a certain interest rate . Here's how it works: Divide 72 by the interest rate. The answer is the number of years it will take for any amount of money to double. For example, if your money in savings earned 3% interest, then you'd need (72/3 =) 24 years to double it. You also can use the Rule of 72 to estimate the interest rate needed to double your money in a certain number of years. For example, if you want your money in savings to double in 9 years, then you'd need to earn (72/9 =) 8% interest on it.
A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.
In finance, the rule of 72, the rule of 71, the rule of 70 and the rule of 69.3 all refer to a method for estimating an investment's doubling time, or halving time. These rules apply to exponential growth and decay respectively, and are therefore used for compound interest as opposed to simple interest calculations. The Eckart-McHale Rule ("the E-M Rule") provides a multiplicative correction to these approximate results.