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Accuracy: The Rule of 72 is generally more accurate than the Rule of 70 for growth rates that are multiples of three, such as 6% or 9%. This is because 72 is divisible by more numbers, allowing ...
The Rule of 72 is a general mathematical guideline, in financial planning, that determines how long an investment portfolio will take to double. The Rule assumes a fixed rate of return (ROR), and ...
This means to use the rule of 72 all you do is divide 72 by the fixed rate of return to get the number of years it will take for your initial investment to double. For example, if your investment ...
Remember though, the Rule of 72 is designed to be a rough estimate and its assumptions aren't always realistic. It assumes a constant rate of return, and stock returns are anything but constant.
The rule of 72 suggests that your mutual fund investment would double to $100,000 in 12 years. The key assumption of the rule—that the rate of return remains stable for years—means that it ...
The Rule of 72 The Rule of 72 is a method for estimating how long it will take for money to double at a specific interest rate. The best way to highlight this is with an example. Let's say you ...
The Rule of 72 is a formula to quickly find out how long it can take for money to double at a given return rate. Simply ...