72 / 9% = 8 years

Remember, this is merely an estimate. The actual time required to double your
investment at 9% is 8.043 years. Not too
far off of an estimate.
## Saturday, June 30, 2012

### Rule of 72

In a previous blog I discussed the power of compounding
interest. But how long does it take
until your money doubles? This is a
common question, and should be as the point of investing is to increase the
value of your money. There are
calculators you can easily Google which will calculate how long it will take to
double/triple the value of your account, but there is an easy way to calculate
an estimate. This is called the Rule of
72. It is a really easy way to estimate
the time required to double your investment.
To perform the calculation, simply take 72 divide it by the interest
rate (in percentage) of your return and the answer will be an approximate in
the number of years to double your investment.

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