Doubling Period - How long it will take to double my money?
Hi, Is there any simple way of knowing the answer of this simple question? 
Ya. At least two simple methods are available, it seems.
Rule of 72
This rule says doubling period is obtained by dividing 72 by the interest rate.
If the interest rate is 10%, then your money will double in 7.2 years. It is a crude and approximate way of finding doubling period.
Rule of 69
Doubling period = 0.35 +( 69 / interest rate )
If the interest rate is 10%, then according to rule of 69
Doubling period = 0.35 + (69/10)
= 0.35+6.9
= 7.25 years
It is more accurate.
How long would it take to double the invested amount
at a given rate of interest?
Ya. At least two simple methods are available, it seems.
Rule of 72
This rule says doubling period is obtained by dividing 72 by the interest rate.
If the interest rate is 10%, then your money will double in 7.2 years. It is a crude and approximate way of finding doubling period.
Rule of 69
Doubling period = 0.35 +( 69 / interest rate )
If the interest rate is 10%, then according to rule of 69
Doubling period = 0.35 + (69/10)
= 0.35+6.9
= 7.25 years
It is more accurate.
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