Rule of 72 (How to Quickly Calculate IRR)
Rule of 72 (How to Quickly Calculate IRR)
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The Rule of 72: What It Is and How to Use It in Investing
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The Rule of 72 is a simple financial formula that estimates the number of years it takes for an investment to double in value by dividing 72 by the annual interest rate. For example, an investment with a 6% annual return will double in approximately 12 years (72 ÷ 6 = 12). This rule is also useful for estimating how long it takes for inflation to halve the purchasing power of your money or how quickly debt can double. 🚨 Follow for more 🚨 #finance #financialplanning #dividends #financetips #fin
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Milan Singh on Instagram: "💰 The Rule of 72 Did you know that compound interest is considered the 8th wonder of the world? The Rule of 72 explains exactly why. It explains how long it’ll take you to double your money, given you know your return. Here’s how compound interest makes it better. - Milan Follow me @milansinghhh if you want to build your wealth 💸 Have you applied this rule to your investments yet? Let me know in the comments!👇 #WealthWithMilan #finance #personalfinance money saving
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