How to double your money? How easy it is or how tough it is? When it comes to investing, many of us have a mindset to look into when our money will double. Let us see the concept of doubling our money.
Have you heard an insurance agent claiming you in how many years your money will double by investing yearly? Have you heard the real estate stories where their calculation is purely based on like in how many years your money will double?
Rule of double your money
There is one general formula to calculate like in how many years your money will double. Even though I am not a fan of such generic formula, I am just sharing it here for your understanding. It is called Rule of 72.
T=72/R (Where T=Time taken to double your money and R= Rate of interest on your investment).
Let us say R=12%, then the time taken to double your money is 6=72/12. Like this, you can randomly calculate the rule of 72 or to understand in how many years your money can double.
