rule of 72

rule of 72 definition - finance
A formula that calculates the number of years it will take to double your money at various interest rates. To use the rule of 72, divide 72 by the interest the investment returns. The answer will be the number of years before the money doubles.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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