Rule of 72The rule of 72 is a handy rule used in finance to estimate quickly the number of years it takes to double a sum of capital given an annual interest rate, or to estimate the annual interest rate it takes to double a sum of money over a given number of years. The rule states that interest percentage times the number of years it takes to double a principal amount of money is approximately equal to 72.

The Rule of 72 is applicable in exponential growth (as in compound interest) or in exponential decay.

The Rule of 72 is applicable in exponential growth (as in compound interest) or in exponential decay.

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