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Explained: Want to know how long your investment will take to double? Use Rule of 72

The Rule of 72 is a tool that assists investors in estimating investment growth duration. By dividing the rate of return into 72, one can predict how long doubling their investment will take.

  • Rule of 72 estimates time for investment to double based on rate of return
  • Divide 72 by annual rate of return to find doubling time in years
  • Determine required rate of return to double investment in set timeframe

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