The Rule of 72
Does everybody know how money works in the market today?
In today's economy, everyone investing their money should know how money works and what banks and corporations do with their money.
The Rule of 72 is a simplified method in estimating how long the money you invested will take to double, given a fixed annual rate of return.
By dividing 72 by the annual rate of return (or interest) investors can get a rough estimate of how many years it will take for the initial money invested to duplicate itself.
Based on the charts you can compare the difference between low rates and high rates of return and which doubles your money faster.
Money Invested Rate of Return No. of years to
double your money
$1,000.00 1% 72 years$1,000.00 2% 36 years
$1,000.00 3 % 24 years
$1,000.00 4% 18 years
$1,000.00 6 % 12 years
$1,000.00 8 % 9 years
$1,000.00 12% 6 years
$1,000.00 24% 3 years
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