Rule of 72 Definition The rule of 72 definition is an approximation tool used to determine the amount of time it will take for money to double on the earnings of compound interest. The Rule of 72 is also used to calculate the rate of return necessary to double an investment in a specific amount
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The rule of 72 is an approximation tool used to determine the amount of time it will take for money to double on the earnings of compound interest. Rule of 72 Explained The rule of 72 is essentially an estimation for determining the amount of years or the doubling time of an investment. Do this
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See Also: Valuation Methods Net Present Value Method Adjusted Present Value (APV) Method Present Value (PV) Opportunity Cost Future Value Definition Future value (FV) is the value of a sum of money at a future point in time for a given interest rate. The idea is to adjust the present value of a sum of
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