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- Rule_of_72 abstract "In finance, the rule of 72, the rule of 70 and the rule of 69 are methods for estimating an investment's doubling time. The rule number (e.g., 72) is divided by the interest percentage per period to obtain the approximate number of periods (usually years) required for doubling. Although scientific calculators and spreadsheet programs have functions to find the accurate doubling time, the rules are useful for mental calculations and when only a basic calculator is available.These rules apply to exponential growth and are therefore used for compound interest as opposed to simple interest calculations. They can also be used for decay to obtain a halving time. The choice of number is mostly a matter of preference, 69 is more accurate for continuous compounding, while 72 works well in common interest situations and is more easily divisible.There are a number of variations to the rules that improve accuracy. For periodic compounding, the exact doubling time for an interest rate of r per period is,where T is the number of periods required. The formula above can be used for more than calculating the doubling time. If you want to know the tripling time, for example, simply replace the constant 2 in the numerator with 3. As another example, if you want to know the number of periods it takes for the initial value to rise by 50%, replace the constant 2 with 1.5.".
- Rule_of_72 wikiPageExternalLink The_Scales_Of_70.htm.
- Rule_of_72 wikiPageExternalLink rule_of_72.cfm.
- Rule_of_72 wikiPageExternalLink discount%20mathematics.htm.
- Rule_of_72 wikiPageExternalLink 003_nov1973_05.pdf.
- Rule_of_72 wikiPageExternalLink rule72.htm.
- Rule_of_72 wikiPageID "334320".
- Rule_of_72 wikiPageRevisionID "604353573".
- Rule_of_72 hasPhotoCollection Rule_of_72.
- Rule_of_72 subject Category:Debt.
- Rule_of_72 subject Category:Exponentials.
- Rule_of_72 subject Category:Interest.
- Rule_of_72 subject Category:Mathematical_finance.
- Rule_of_72 subject Category:Rules_of_thumb.
- Rule_of_72 comment "In finance, the rule of 72, the rule of 70 and the rule of 69 are methods for estimating an investment's doubling time. The rule number (e.g., 72) is divided by the interest percentage per period to obtain the approximate number of periods (usually years) required for doubling.".
- Rule_of_72 label "72er-Regel".
- Rule_of_72 label "72の法則".
- Rule_of_72 label "72法則".
- Rule_of_72 label "Reguła 72".
- Rule_of_72 label "Rule of 72".
- Rule_of_72 label "Règle des 72".
- Rule_of_72 label "Правило 72".
- Rule_of_72 sameAs 72er-Regel.
- Rule_of_72 sameAs Règle_des_72.
- Rule_of_72 sameAs 72の法則.
- Rule_of_72 sameAs Reguła_72.
- Rule_of_72 sameAs m.01x8gp.
- Rule_of_72 sameAs Q264016.
- Rule_of_72 sameAs Q264016.
- Rule_of_72 wasDerivedFrom Rule_of_72?oldid=604353573.
- Rule_of_72 isPrimaryTopicOf Rule_of_72.