In finance, the rule of 72 is an estimating method for doubling the invested capital.It works well for fixed income segments.This rule also works to estimate the purchasing power to halve with respect to inflation.
For instance, if you were to invest Rs 1000 with compounding interest at a rate of 9% per annum, the rule of 72 gives 72/9 = 8 years required for the investment to be worth Rs 2000.
Remember,the rule of 72 works well only for compound interests.
For instance, if you were to invest Rs 1000 with compounding interest at a rate of 9% per annum, the rule of 72 gives 72/9 = 8 years required for the investment to be worth Rs 2000.
Remember,the rule of 72 works well only for compound interests.
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