শনিবার, ২২ অক্টোবর, ২০১৬

Rule of 72 / 114 /144

Divide 72 by the interest rate you are compounding your money with and you will arrive at the number of years it will take to double in value.
So if the interest rate is 9% then your money will double in 72/9 = 8 years



Rule of 114 - In how much time will your money triple?

It works the same way as the rule of 72. Divide 114 by the interest rate to know in how many years will 10,000 become 30,000

So if the interest rate is 9% then your money will triple in 114/9 = 12.7 years
 
Similarly, Rule of 144 tells you in how much time will your investment quadruple in value.

So if the interest rate is 9% then your money will quadruple in 144/9 = 16 years

Note:: they aren’t perfect but neither is the Rule of 72. However, these formulas will give you a good estimate of how long it takes double, triple or quadruple your money. 

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