Responses
The amount of time it will take for an investment to double in value
The amount of time it will take for an investment to double in value
The amount of money one should save by retirement
The amount of money one should save by retirement
The amount of taxes owed for every $72 invested
The amount of taxes owed for every $72 invested
The amount of credit one needs for a good credit report
The amount of credit one needs for a good credit report
1 answer
The correct response is:
The amount of time it will take for an investment to double in value.
The Rule of 72 is a simple formula used to estimate the number of years required to double the investment at a fixed annual rate of return. You divide 72 by the expected annual rate of return (expressed as a percentage) to get the approximate number of years.
