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rule of 72
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rule of 72


The rule of 72 is useful for in-the-head approximations.
  finance:  method of estimating the time required to double an investment; 72 divided by the annual return percentage

For example:  If an investment returns 12%, the invested funds will have doubled in 6 years (72 divided by 12 equals 6).
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  • The rule of 72 is useful for in-the-head approximations.
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Associated words [difficulty]:   rule of 72 , Return on Investment (ROI) [7]
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Most commonly used in these subjects:   Personal Finance, Business, Public Policy & Politics
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