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The finance rule of 72 basically is a way to find out how long it will take for someone to double their money, given a certain interest rate. E.g. if you had an interest rate of 9% a year on an investment, it will take 72/9 = 8 years to double your initial investment.

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12y ago

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What is the first rule of finance?

High Risk, High Reward


What is the rule of 72 in savings and investments?

The rule of 72 is a quick and very accurate method of determining how long it takes for money to double at a specified rate of interest, compounded annually. For example, using the rule of 72 with a compounded interest rate of 6% it would take 12 years to double your money (72 divided by 6). The precise amount of time it takes to double your money at 6% based on the actual computation of compounded interest is 11.9 years. The rule of 72 works very well unless the rate of interest exceeds 20% at which point the error rate starts to deviate substantially from the actual answer. The rule of 72 can also be used to figure out what rate of interest you need to double your money in a specified number of years. For example, if you want to double your money in 5 years, divide 72 by 5 and the interest rate needed is 14.4%.


What exactly is bridging finance?

Bridging finance is a term used to connect financial matters. BNET is a source that is excellent for all things business and financial. You can use this resource to look up bridging finance in more detail.


How can the rule of 72 be used to predict the amount of time it will take for an investment to double?

The rule of 72 is a simple formula used to estimate how long it will take for an investment to double in value. To use it, divide 72 by the annual rate of return on the investment. The result is the approximate number of years it will take for the investment to double.


What can one do exactly with finance leads?

Finance leads can be sold or trade to companies. You can find more information on financial leads online at Driving Leads, Investopedia, and DIY Themes.