The rule of 72 tells you approximately how long it takes for money invested at a given rate of compound interest to double in value.

Question

Quizplus · Accepted Answer

The rule of 72 is a commonly used formula to estimate the time it takes for an investment to double in value based on a fixed annual rate of return. Divide 72 by the annual interest rate to get an estimate of the number of years it will take for the investment to double in value. For example, if the interest rate is 6%, then it will take approximately 12 years (72/6) for the investment to double.

The Rule of 72 Tells You Approximately How Long It