This helpful investment rule-of-thumb tells you approximately how many years it takes for a sum of money to double in size.

Question

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The rule of 72 states that if you divide 72 by the annual rate of return, it will give you an approximate number of years it takes for a sum of money to double in size through compounding. For example, if you have an annual rate of return of 6%, it would take approximately 12 years for your money to double (72/6 = 12).

This Helpful Investment Rule-Of-Thumb Tells You Approximately How Many Years