Rule of 72

Rule of 72 says that dividing 72 by the rate of return gives the approximate number of years it takes for an amount of money to double. For example, an investment yielding a compounded rate of return of 18% will double in about four years (72 divided by 18 equals 4) and one yielding 12% will double in about 6 years (72 divided by 12 equals 6).

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