DEFINITION of 'Rule Of 72'
A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double.
INVESTOPEDIA EXPLAINS 'Rule Of 72'
For example, if you want to know how long it will take to double your money at 12% interest, divide 12 into 72 and you get six years.
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RELATED FAQS

What is the difference between the rule of 70 and the rule of 72?
The rule of 70 and the rule of 72 give rough estimates of the number of years it would take for a certain variable to double. ... Read Full Answer >> 
How do I calculate how long it takes an investment to double (AKA 'The Rule of 72') ...
You can calculate the approximate amount of years it would take an investment to double, given the annual expected rate of ... Read Full Answer >> 
Is it easier to save for retirement if you start earlier in life? Can I make up for ...
In general, the earlier you start saving for retirement, the easier it will be to afford, given the number of financial obligations ... Read Full Answer >> 
How is the rule of 70 related to the growth rate of a variable?
The rule of 70 is related to the growth rate of a variable because it uses the growth rate in its approximation of the number ... Read Full Answer >> 
What is a "linear" exposure in Value at Risk (VaR) calculation?
A linear exposure in the valueatrisk, or VaR, calculation is represented by positions in stocks, bonds, commodities or ... Read Full Answer >> 
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Simple random sampling is the most basic form of sampling and can be a component of more precise, more complex sampling methods. ... Read Full Answer >>
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