Use the Rule of 72 to quickly estimate the number of years required to double your investment at a given annual rate of return.
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The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. 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 duplicate itself.
The core formula used is:
Years to Double ≈ 72 / Annual Rate of Return
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