Rule of 72 - A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.
An arithmetic equation used to calculate how many years it would take for an investment to double in value, given knowledge of its annual rate of return and reinvestment (compounding) of income.The rule says that if you divide the compound growth rate of any investment into 72, you get the approximate number of years it takes to double your money.BZW research shows that over the past 70 years the average return from shares was 12% p.a., from gilts it was 6% and from cash deposits it was 2%. Based on these figures, the Rule of 72 indicates:Shares: you double your money in 6 yearsGilts: you double your money in 12 yearsCash deposits: you double your money in 36 yearsOf course, in real life the performance of your investments will vary according to which particular investment you choose and the timing of your entry and exit.
Rule of 72 : a rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. the result is the approximate number of years that it will take for your investment to double.
an arithmetic equation used to calculate how many years it would take for an investment to double in value, given knowledge of its annual rate of return and reinvestment (compounding) of income.the rule says that if you divide the compound growth rate of any investment into 72, you get the approximate number of years it takes to double your money.bzw research shows that over the past 70 years the average return from shares was 12% p.a., from gilts it was 6% and from cash deposits it was 2%. based on these figures, the rule of 72 indicates:shares: you double your money in 6 yearsgilts: you double your money in 12 yearscash deposits: you double your money in 36 yearsof course, in real life the performance of your investments will vary according to which particular investment you choose and the timing of your entry and exit.
Rule of 72