rule of 72
Definition
Method of computing the time in which an invested sum will double at a specific rate of interest; or for computing the interest rate that will double a principal in a specific period. Formula for time (years): 72 ÷ Annual rate of interest. Formula for interest rate (annual percent): 72 ÷ Number of years.
rule of 72 is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
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