The Rule of 72 is a simple mathematical formula that can help you estimate how long it will take for your money to double. It works by dividing the number 72 by the interest rate you expect to earn on your investment. The result is the number of years it will take for your money to double. For example, if you expect to earn an interest rate of 6%, it will take approximately 12 years for your money to double (72 divided by 6 equals 12).
This formula is useful for anyone who wants to estimate how long it will take for their investments to grow. It can also help you compare different investment options and choose the one that is right for you.
It’s not perfect but easy to do on your phone or a calculator and doesn’t require any complex math.