People always want to know how long it would take them to double their investment. Its a curious question because all of us want our money to multiply as soon as possible. So, here’s a simple calculation called Rule of 72, which will help you know how long it takes to double the investment amount.
If we divide 72 by the RoI [annual rate of interest], we get the time period for doubling our money.
For example: If RoI is 9%, then 72/9 = 8. So, it will take 8 years for amount to double at 9% annual interest rate; whatever be the invested amount. Lower the rate, higher the time taken for doubling.
Suppose there is a bull run and RoI is 14%, then 72/14 = 5.14. So, it will take a little over 5 years for the invested amount to double.
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