• Rule Of 72 Pdf
• Visual Basic Rule Of 72 Program Telewizyjny Program

The rule of 72 is reasonably accurate for interest rates between 6% and 10%. When dealing with rates outside this range, the rule can be adjusted by adding or subtracting 1 from 72 for every 3 points the interest rate diverges from 8%. So for 11% annual compounding interest, the rule of 73 is more appropriate; for 14%, it would be the rule of 74; for 5%, the rule of 71.For example, say you have a 22% rate of return (congratulations). The rule of 72 says the initial investment will double in 3.27 years.

Rule Of 72 Pdf

Visual Basic Rule Of 72 Program Telewizyjny Program

Since 22 – 8 is 14, and 14 ÷ 3 is 4.67 ≈ 5, the adjusted rule would use 72 + 5 = 77 for the numerator. This gives a return of 3.5, meaning you'll have to wait another quarter to double your money. The period given by the logarithmic equation is 3.49, so the adjusted rule is more accurate.