Here’s a helpful way to estimate the amount of time or the interest rate you would need to double your money on savings or an investment. It’s called the Rule of 72.
Let’s say you have an investment that’s earning 8% per year. Start with the number 72 and divide it by the interest rate, eight. 72 divided by 8 equals 9. This means it would take about nine years for your original investment to double. Try another example for yourself.
We hope the Rule of 72 inspires you to get the highest return you can on your savings and investments!
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