How To Find The Time It Takes For An Investment To Double Using Rule of 72 formula. the rule of 72 is a simple way to estimate a compound interest calculation for doubling an investment. the formula is interest rate multiplied by the number of time periods = 72: r * t = 72. where. r = interest rate per period as a percentage. t = number of periods. commonly, periods are years so r is the interest rate per. However, when using our compound interest rate calculator, you will need to provide this information in the appropriate fields. don't worry if you just want to find the time in which the given interest rate would double your investment; just type in any numbers (for example, 1 1 1 and 2 2 2).
Find Doubling Time For Compound Interest Youtube Simply divide 72 by the interest rate to determine the outcome. at a 2% interest rate, it would take 36 years to double your money. at a 12% interest rate, it would only take six years to double your money. you can also use the rule of 72 to approximate how much an amount would grow over a time period. let’s say you wanted to set aside $5,000. Use the formula a=p (1 r n)^nt. for example, say you deposit $5,000 in a savings account that earns a 5% annual interest rate and compounds monthly. you would calculate a = $5,000 (1 0.00416667. How long does it take to double an investment using compound interest? if you want to find the time it will take to double an investment using compound interest then you can use the rule of 72. the rule of 72 provides an approximation of the time to double by dividing 72 by the annual interest rate. For example, the rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ( (72 ÷ 10) = 7.2) to grow to $2. in reality, a 10% investment will take 7.3 years.
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