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The '''Rule of 72''' is a rule of thumb used to estimate how long it takes money invested to double at a given interest rate.
The '''Rule of 72''' is a rule of thumb used to estimate how long it takes money invested to double at a given interest rate.
The number 72 is placed into the [[numerator]] and the rate of interest (as a whole number) in the [[denominator]], with the quotient being the approximate number of years (subject to rounding error).
The number 72 is placed into the [[numerator]] and the rate of interest (as a whole number) in the [[denominator]], with the quotient being the approximate number of years (subject to rounding error). For example, if an interest rate is 6%, it will take approximately 12 years (72/6) for the investment to double.
[[Category:Finance]]
[[Category:Finance]]