Rule of 72

POSTED BY Biswa Singh ON November 5, 2012 8:41 pm COMMENTS (3)

Rule of 72 is useful if you are really bad at maths and want to know roughly in how many years your investment will double when you know the interest rate.

No of years = 72 / Rate of interest

So if the rate of interest is 9 % then 72 / 9 = 8 years in which the investment will be doubled.

or

Rate of interest = 72 / No of years 

If you want to invest for 12 years and you want your investment to be double then what should be the rate of interest i.e. 72 / 12 = 6%.

3 replies on this article “Rule of 72”

  1. Ashal Jauhari says:
    February 18, 2013 at 6:40 am

    Dear Biswa, thanks for the sharing. Please keep posting such small but important & useful info.

    Thanks

    Ashal

    Reply
  2. Biswa Singh says:
    November 6, 2012 at 2:27 pm

    Thanks Manish! I think you can also publish TIPs like “Rule of 72” apart from your weekly post. There may be many tricks and shortcuts or important thing that we need to know and which does not require a full blog post.

    Also we dont have to wait for a week to here something from your 🙂

    Reply
  3. Manish Chauhan says:
    November 6, 2012 at 1:30 pm

    Thanks for that info Biswa . I am sure many people will love that !

    Reply

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