Saturday, December 18, 2010

THE RULE OF 72 - Quite Interesting

Yesterday, while surfing a book, I got something interesting to share with you..THE RULE OF 72; some of you might be knowing it but for me it was quite new and may be for most of you. So here it goes..


I have Rs. 10000/- to invest into but i want to know how long it will take to get my money doubled if a rate of 6% p.a. is offered. Of course, there are many other ways to find the same, but the easiest one I have found is the 72 RULE i.e.

Divide 72 with the rate of return i.e. 6% which comes out to be 72/6 = 12. So, it will take 12 full years to get my money doubled.

Wait..there is one assumption, the simple one actually i.e. any part of amount is not withdrawn during the period.

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