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 |