How To Double Your Money Using The Rule Of 72 Youtube This gives you 10 years to double your money, which means you'll need a 7.2% annual return (72 r=10 leads to r of 7.2). read: 7 of the best high yield bond funds to buy now. For example if you wanted to double an investment in 5 years, divide 72 by 5 to learn that you'll need to earn 14.4% interest annually on your investment for 5 years: 14.4 × 5 = 72. the rule of 72 is a simplified version of the more involved compound interest calculation. it is a useful rule of thumb for estimating the doubling of an investment.
The Rule Of 72 Double Your Money To calculate the doubling time using the rule of 72, you'd input the numbers into the formula as follows: 72 10.5 ≈ 6.8. this means your initial $1,000 investment will be worth $2,000 in about. To use the rule of 72, divide the number 72 by an investment's expected annual return. the result is the number of years it will take, roughly, to double your money. for example, if the expected. The rule of 72 formula. you don’t need a special ‘rule of 72’ calculator to figure out this equation—it’s easy. simply divide 72 by the fixed annual rate of return and you’ll know how many years it will take for your money to double. 72 rate of return = # of years. if you’re trying to compute when your money will double at a. The rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return. alternatively, it can.
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