The formula to calculate the Rule of 72 is:
\[ \text{Rule of 72} = \frac{72}{i} \]
Where:
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.
Rate of Interest as Whole Number is the given interest rate presented as a whole number.
Let's assume the following value:
Using the formula:
\[ \text{Rule of 72} = \frac{72}{i} \]
Evaluating:
\[ \text{Rule of 72} = \frac{72}{20} \]
The Rule of 72 is 3.6.
| Rate of Interest | Rule of 72 |
|---|---|
| 10 | 7.20 |
| 15 | 4.80 |
| 20 | 3.60 |
| 25 | 2.88 |
| 30 | 2.40 |
| 35 | 2.06 |
| 40 | 1.80 |
| 45 | 1.60 |
| 50 | 1.44 |
| 55 | 1.31 |
| 60 | 1.20 |
| 65 | 1.11 |
| 70 | 1.03 |
| 75 | 0.96 |
| 80 | 0.90 |
| 85 | 0.85 |
| 90 | 0.80 |
| 95 | 0.76 |
| 100 | 0.72 |