Double Your Money: The Rule of 72!
You can calculate the approximate time it takes for your money to double in value simply by dividing the number 72 by the interest rate of your investment.
- Example: 72 divided by 6 percent = 12 years Thus, it will take 12 years for an investment earning 6% interest to double in worth.
You can also use the Rule of 72 to determine what interest rate you need in order to double your money in a specific time
- Example: if you want to double your money in 5 years, divide 72 by 5 and you will find the interest rate you need is 14.5%
Find more information about investing and making your money grow by visiting www.americanfinancialsolutions.org.
Published Dec 9, 2010.