The Rule of 72 is a well known formula in Investment guides to calculate the number of years required to double your present corpus value at a given interest rate. This is essential for you to determine where you want to park your money so that it gives you a good return and helps you in planning your future accordingly.
Number of years, T = 72/ R , where R is the rate of interest.
For example , you have invested in a bank FD with 8% interest rate, then (72/8 = 9 years), your present value will double in 9 years.
Hope this simple and easy to remember formula helps you.
Number of years, T = 72/ R , where R is the rate of interest.
For example , you have invested in a bank FD with 8% interest rate, then (72/8 = 9 years), your present value will double in 9 years.
Hope this simple and easy to remember formula helps you.
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