Rule of 72 is used to estimate how long it will take to double the principle number, given a growth rate. In other words: Days to double the principal(d) = 72/(growth rate) For example, suppose we want to find how many days it will take to double my investment of $1000 in US markets. We assume that future returns are similar to historical returns. US markets have delivered 8% every year over the last 50-60 years.
Rule of 72
Rule of 72
Rule of 72
Rule of 72 is used to estimate how long it will take to double the principle number, given a growth rate. In other words: Days to double the principal(d) = 72/(growth rate) For example, suppose we want to find how many days it will take to double my investment of $1000 in US markets. We assume that future returns are similar to historical returns. US markets have delivered 8% every year over the last 50-60 years.