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What Is The Rule Of 72

What Is The Rule Of 72 What is the Rule of 72?

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest.

By dividing 72 by the annual rate of return, you can get a rough estimate of how many years it will take for the initial investment to duplicate itself.

You can also reverse engineer the Rule of 72 by finding out at what growth rate will it take to double a certain metric of a fixed period of time.

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