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Saturday, October 24, 2009

Rule of 72

If you know the likely rate of return of any asset class, dividing 72 by that number gives the period (number of years) in which the investment will double in value.

For eg: if you invest in National Savings Certificate which offers 8% interest, then 72/8 = 9 years : it would take 9 years at the rate of 8% to double your money.

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