If you've dabbled in investing, you've likely heard of the "Rule of 72." It's a back-of-the-envelope metric for calculating how quickly an investment will double in value. Most financial metrics ...
The Rule of 72 also has limitations. Like the Rule of 70, it assumes a constant rate of return. Additionally, it is most accurate for interest rates between 6% and 10%.
The rule of 72 is a shortcut investors can use to determine how long it will take their investment to double based on a fixed annual rate of return. To use the rule of 72, divide 72 by the fixed ...
Therefore, it should be used in conjunction with other financial analysis tools. The Rule of 72 is another way to estimate the time it will take for an investment to double in value, given a fixed ...
The Rule of 70 and the Rule of 72 are two popular shortcuts that can help investors quickly estimate the doubling time of an investment. These rules are particularly useful for grasping the potential ...
Learn the Rule of 72 To Set Realistic Goals and Compare Investments Peter Gratton, M.A.P.P., Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing ...