Wednesday, August 13, 2025

Rule Of 72

Using the Rule of 72, which is a common rule of thumb to estimate doubling time for compound interest, an 8% compound interest rate would lead to the original investment doubling in approximately 9 years . 

The Rule of 72 formula is 72 divided by the interest rate (as a whole number). In this case, 72 divided by 8 equals 9.

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