Use the Rule of 72
You’ve probably wondered “How long will it take to double my investment at a given rate of return?”
The Thumb rule of 72 comes in handy here.
Just divide 72 by the interest rate and you have the number of years it takes to double your money, roughly. For example, if the interest rate is 8%, your money doubles in about 9 years (72/8 = 9).
The rule of 72 can help you weigh your investment options.
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