The Rule of 72 is a simple method used to estimate how many years an investment will take to double in value at a given rate of return. It provides a quick way for investors to understand how long their money may take to grow to twice its original value.
This Rule of 72 provides a reasonably accurate estimate, particularly when used with lower rates of return. It is mainly useful for investments that earn compound interest, while it is less suitable for investments based on simple interest.
