Money Guru: What is the Rule of 72? How to calculate the exact time in which money doubles? Swati Raina decodes
What is Rule 72? How does it work? Swati Raina discussed this with Amit, Founder of Amitkukreja.com on the popular TV show Money Guru.
Money Guru: Whenever we invest our money in any scheme, we definitely think that in how much time the amount will double. What is the easy opportunity to double the money? To decode this it is necessary to understand the rule of 72. But what is Rule 72? How does it work? Swati Raina discussed this with Amit, Founder of Amitkukreja.com on the popular TV show 'Money Guru'.
Example - How to apply Rule of 69
As an example, let's think someone has invested in a scheme, which gives an annual return of 10%. Then according to Rule 69, the person will have to divide 69 by 10 and then add 0.35. 69/10 + 0.35 = 7.25 years, which means, the money invested in this scheme will double in 7.25 years.
Investment Return Double (in years)
Mutual Funds 14% 5.27 Years
FD 5.5% 12.89 years
Savings account 4% 17.6 years
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