Have you heard of the Rule of 72. It’s a simple concept all finance peeps should know. The Rule of 72 is a simplified formula that calculates how long it'll take for an investment to double in value, based on its interest rate (compounded annually.)
But, how does it work?
It couldn’t be easier. For reals. Just divide the interest rate into 72.
If you want to know how long it will take to double your money at eight percent interest, just divide 72 by 8. That gets you 9. So, if you earn 8%, your money will double in roughly 9 years.
This also works in reverse 🔄 If you wanna double your money in 9 years, you will need to earn 8%, APR.
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