Rule of 72

The rule of 72 is a useful quirk that allows you to quickly calculate an investment return. Simply divide the 72 by your expected rate of return to get the number of years that your investment will take to double.

As an example, if you were to invest in bonds that yield 6% then 72/6 = 12. Your invested amount would double in 12 years.

You can also use this simple rule to figure out what rate of return you need to get your investment to double. For example if you want your money to double in 5 years you will requre a rate of return of 14.4% (72/5).

Very usefull if you don’t have a calculator available!