For example, an investment earning roughly 7% per year will double in value in 10 years -- specifically, 72 divided by 7 is approximately 10.
Also called rule of 72.
Use 72 rule in a sentence
“ The 72 rule was very important to us and I had a lot of faith that we would get things done indue time and be ready to go. ”
“ If you are dealing with variable interest rates and high levels of inflation, don't depend on the 72 rule to determine whether something is a good investment. ”
“ My financial planner is a big fan of the 72 rule and explained to me that it would show me beyond a doubt how weak my plan to invest in government savings bonds was. ”