The Rule of 72
You can easily see how the rate of return can impact your investments by applying the "Rule of 72." This is a simplified way to show how long your money takes to double at a fixed annual interest rate.
Dividing 72 by the following percentages shows the time needed:
Interest Rate |
# of Years to Double |
2% |
36 |
4% |
18 |
6% |
12 |
8% |
9 |
10% |
7.2 |