I love the Rule of 72, because it lets you do quick math in your head to determine how quickly an investment can compound (i.e., double or triple in value) over time.
What is the Rule of 72? Simply put, the Rule of 72 is a quick way to estimate the number of years required to double the value of an investment at an annual rate of return.
This method was first featured in the Summa de Arithmetica of Luca Pacioli in 1494, which is impressive. Pacioli suggested using this method for calculating the estimated time of doubling investment. [Read more…] about What is the Rule of 72? A Simple Definition and Examples.