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The Rule of 72

Updated: Feb 22

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.

Simply divide the number 72 by the interest rate and you will have an approximate time it takes for a loan to double or a savings to double. This is based upon simple interest.

72 divided by 6 = 12 years for doubling.

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