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. For example, the rule of 72 states that $1000.00 invested at 8% would take 9 years, 72/8 = 9, to double in value or turn into $2000.00.

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