What is thumb rule 72 – Number of years required to double your investment – compound interest – Time required to double your hard earned funds

Rule of 72 – Mathematical wonders

Number of yrs required to double your money at a given rate, U just divide 72 by interest rate

 

Example :

if you want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs

 Number 72 / rate of interest =  number of years

At 6% rate, it will take 12 yrs

At 9% rate, it will take 8 yrs