Adebola Alabi
The rule of 72 is to measure how long an investment will take to double in value.
Rule of 72 = 72/(Annual Rate of return)
For example, if your investment earns:
1%, it will take 72 years for your money to double (72 / 1 = 72)
2%, it will take 36 years for your money to double (72 / 2 = 36)
4%, it will take 18 years for your money to double (72 / 6 = 18)
8%, it will take 9 years for your money to double (72 / 8 = 9) 1
8%, it will take 4 years for your money to double (72 / 18 = 4)
