Rule of 72

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January 1, 1 6 min read Definitions

Rule of 72 Compound Interest Investment Growth Financial Planning Doubling Time

The Rule of 72 is a simple formula used to estimate the number of years required to double the principal amount of money invested at a given annual rate of compound interest. By dividing the number 72 by the annual interest rate, investors can quickly gauge the growth period needed for their investment to double without using complex calculations.