Rules of 72 is a simple estimation of how long an investimate will take to double the principal at a fixed compound rate of return. By dividing 72 by annual rate of return, an investor will obtain the time it will take to double the money. At a 5% annual return, it will take 14.4 years to double the initial investment while 10% annual return will take only 7.2 years. The higher rate of return will double your money faster.
© 2006 - 2023, Brand Media, Inc. All rights reserved.