What is the Rule of 72?
The Rule of 72 is a very simple calculation that shows you how long it will take to double your money given a certain interest rate.
All you do on your calculator is type 72 and divide by the interest rate.
This interest rate could be the interest your bank gives you or a return percentage on your investment that you are anticipating.
The results are not 100% accurate but close enough to give you a good quick indication.
The Formula
72 / Interest Rate = Years to double money
Example:
Interest rate: 8%
Calculation:
72 / 8 = 9 years to double your money
