Rule of 72
Previous Lesson: Effective Interest Rate
Next Lesson: Loan Amortization
Investors commonly ask the question that how long it would take to double the amount at a given rate of interest. To answer we use the rule of 72 or rule of 69.
Example 1:
To estimate how long it will take Rs. 15,000 to grow to Rs. 30,000 at an annual growth rate of 10%?
Further Readings
References
Financial Management: Theory and Practice, Dr Eugene F Brigham & C Micheal Ehrhardt
Fundamentals of Financial Management: Concise Edition, Brigham Houston
The Economist Guide to Financial Management, John Tennet
Financial Management: Core Concepts, Raymond M Brooks
0 Comments