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Author: admin | Category: Auto Rate Calculator | Date: 05.02.2016

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.

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