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Rule Of 72 Chart
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Rule Of 72 Chart. The rule is a shortcut, or back-of-the-envelope, calculation to determine the amount of time for an investment to double in value. That number gives you the approximate number of years it will take for your investment to double.
CONCENTRIC - Rule of 72 (Willie Neal) That number gives you the approximate number of years it will take for your investment to double. With less time, you may need a. Looking at how rate affects time makes it clear - there are diminishing returns the higher you set your interest rate.
It helps you figure out—without having to use a calculator—how long it will take for your money (or investment) to double itself.
It's meant to be done mentally as a quick gauge for when an investment will double in value, but you can always use a calculator to further simplify the math.
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This rule effectively tells you how long it would take to double your money, depending on what interest rate you are earning on it. Most investment professionals use compound interest formulas and other fancy math stuff like logarithms to figure out the exact same thing. Although scientific calculators and spreadsheet programs.
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