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   How do you calculate the rule of 72?

   • The Rule of 72 can be leveraged in two different ways to determine an expected doubling period or required rate of return. To calculate the time period an investment will double, divide the integer 72 by the expected rate of return. The formula relies on a single average rate over the life of the investment.

   The Rule of 72: Definition, Usefulness, and How to Use It - Investopedia

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   Is the rule of 72 more accurate than the rule of 69?

   • The Rule of 72 is more accurate if it is adjusted to more closely resemble the compound interest formula—which effectively transforms the Rule of 72 into the Rule of 69.3. Many investors prefer to use the Rule of 69.3 rather than the Rule of 72.

   The Rule of 72: What It Is and How to Use It in Investing - Investopedia

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   What is the difference between E-M rule and 72 rule?

   • As the actual doubling time at this rate is 4.19 years, the E-M rule thus gives a closer approximation than the rule of 72. To obtain a similar correction for the rule of 70 or 72, one of the numerators can be set and the other adjusted to keep their product approximately the same.

   Rule of 72 - Wikipedia

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   Is 72 a good investment rule?

   • The answer can reveal just how aggressively you need to invest to reach your goals. The rule of 72 can also reveal the true impact of inflation and fees on your long-term investments. "An investment that charges, say, 3% annually will reduce the returns and thus the time it takes for the investment to double," Azoury says.

   The Rule of 72: How to Double Your Money in 7 Years

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2. www.investopedia.com › terms › rThe Rule of 72: Definition, Usefulness, and How to Use It

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   3 days ago · The Rule of 72 is a simplified formula that calculates how long it'll take for an investment to double in value, based on its rate of return. The Rule of 72 applies to compounded interest rates...

   • Author: Will Kenton

   • Video Duration: 1 min

3. money.usnews.com › investing › articlesThe Rule of 72: How to Double Your Money in 7 Years

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   Feb 14, 2024 · Getty Images. You can use the rule of 72 to reverse engineer how much you need to invest and at what rate of return to reach a given goal. Key Takeaways. The rule of 72 is a shortcut investors...

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5. en.wikipedia.org › wiki › Rule_of_72Rule of 72 - Wikipedia

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   In finance, the rule of 72, the rule of 70 and the rule of 69.3 are methods for estimating an investment's doubling time. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling.

6. www.forbes.com › advisor › investingWhat Is The Rule of 72? – Forbes Advisor

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   Apr 10, 2023 · 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...

7. smartasset.com › investing › what-is-the-rule-of-72The Rule of 72: What Is It, and How Can You Use It? - SmartAsset

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   Aug 29, 2023 · The rule of 72 is a simple formula that shows how quickly your money will double at a given return rate. It works by dividing 72 by your annual compound interest rate and seeing how many years it will take for your investment to double.

8. www.bankrate.com › investing › what-is-the-rule-of-72Rule Of 72: What It Is And How To Use it | Bankrate

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   Aug 29, 2023 · The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to...