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The Rule of 72

23/10/2011

The Rule of 72 refers to the length of time needed to double your money in investments. Here’s how it works:

If you are getting 6% interest on $10,000 in a Savings Account, it would take 12 years for your money to double. [72/6 = 12years]

If you are getting a 10% Return On Investment [ROI], it would take 7.5 years for your money to double. [72/10 = 7.2 round up to 7.5]

If you’re getting 2% interest on your money invested, it would take 36 years for your money to double. [72/2 = 36]

If you are getting a 24% interest on your money, it would take 3 years for your money to double. [72/24 = 3]

Where do you get a 2% ROI? In a bank account.

Where do you get a 10 – 30% ROI? In real estate.

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