Rule of 72

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on

Jul 24, 2020, 6:28:07 PM

Created by

on

Jul 14, 2014, 2:36:36 PM

Rule of 72 = \frac{72}{r}

$"Rule of 72" = 72/( r )$

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$"Rate per period" (r)$

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The Rule of 72 equation is often used as a quick approximation of the length of time required to double an investment. This happens especially under time pressure when one needs to make a quick calculation instead of working out the exact time it takes to double an investment. Its often used to choose multiple stocks, bonds, or savings accounts.

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