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rule of 72

From Wiktionary, the free dictionary

English

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Proper noun

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the rule of 72

  1. (finance) A means of estimating an investment's doubling time. 72 is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling.

Usage notes

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  • The rule of 70 and rule of 69.3 are also commonly used.
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