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What is the definition of the Rule of 72?

Economics

What is the definition of the Rule of 72?

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The Rule of 72 is an economic explanation of the route to determine how long it will take to double an investment if there is a fixed annual rate of interest. With every increase in rates of return, the accuracy of this method decreases. An example of the rule of 72 is as follows: if the rate of return is 2%, it will take roughly 36 years to double one's investment.