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Rule of 72 and 115

I have discussed the Rule of 72 in the past... and very recently, I discovered the Rule of 115. Essentially, the Rules of 72 and 115 allow for very simple arithmetic methods to determine the amount of time it will take you to double or triple your investment, respectively. Just divide 72 or 115 by your rate of return, and it will give you the number of years it will take to double or triple the investment. So, with a rate of return of 10%, annually, it will take you 7.2 years to double your investment, or 11.5 years to triple it. These figures are obviously approximate. You can also use these rules backwards to determine the rate of return you will need to double or triple your investment in a certain period of time. For instance, if you want to double or triple your investment in 10 years, simply divide 72 or 115 by 10, and it will give you the rates required for each, 7.2% or 11.5%, respectively.


I just posted this on Helium Knowledge under the the topic Investing. If you have a moment, stop by and take a look and rate it compared to the other articles.



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