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The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.
The higher the interest rate, the shorter time it will take for your money to double. Always consider this when making an investment.
Reference:
- www.investopedia.com
