The "rule of 72" is a simple calculation that can be used to quickly determine how long an investment will take to double, assuming a fixed annual rate of interest.
While the rule of 72 cannot provide a precise figure for how long it will take for an investment to increase twofold, it is an easy way to get a close approximation for investors to manage their expectations. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to double.
Already a subscriber? Log in
Read the full story and more at $9.90/month
Get exclusive reports and insights with more than 500 subscriber-only articles every month
ST One Digital
$9.90/month
No contract
ST app access on 1 mobile device
Unlock these benefits
All subscriber-only content on ST app and straitstimes.com
Easy access any time via ST app on 1 mobile device
E-paper with 2-week archive so you won't miss out on content that matters to you
