# What do you mean by Rule 72 and 69? By Nick

### Quick Peek:

Want to know how long it will take for your investment to double in value? The rule of 72, 70, and 69.3 can help estimate the investment’s doubling time. Simply divide the rule number by the interest percentage per period to get an approximate number of periods required for doubling. Remember, these rules are not exact formulas, and investments can be unpredictable. So, keep in mind that there are many factors that can affect their performance.

## In finance, the rule of 72, the rule of 70 and the rule of 69.3

If you are interested in finance and investments, you may have heard about the rule of 72, the rule of 70 and the rule of 69.3. These are methods for estimating an investment’s doubling time, which means the amount of time it takes for an investment to double in value. In this article, we will explain these rules and how they work.

### The Rule of 72

The rule of 72 is a simple formula that allows you to estimate how long it will take for an investment to double in value. To use this rule, you divide 72 by the annual rate of return on your investment. The result is the approximate number of years it will take for your investment to double in value.

For example, if you have an investment that is earning a 6% annual rate of return, you can use the rule of 72 to estimate that it will take about 12 years for your investment to double in value (72 divided by 6 equals 12).

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The rule of 72 is not an exact formula, but it can give you a good estimate of how long it will take for your investment to double in value.

### The Rule of 70

The rule of 70 is similar to the rule of 72, but it is used when the rate of return on your investment is not a whole number. To use this rule, you divide 70 by the annual rate of return on your investment. The result is the approximate number of years it will take for your investment to double in value.

For example, if you have an investment that is earning a 7.5% annual rate of return, you can use the rule of 70 to estimate that it will take about 9.3 years for your investment to double in value (70 divided by 7.5 equals 9.3).

The rule of 70 is also not an exact formula, but it can give you a good estimate of how long it will take for your investment to double in value.

### The Rule of 69.3

The rule of 69.3 is another method for estimating an investment’s doubling time, but it is used when the interest rate is compounded continuously. To use this rule, you divide 69.3 by the annual rate of return on your investment. The result is the approximate number of years it will take for your investment to double in value.

For example, if you have an investment that is earning a 5% annual rate of return, compounded continuously, you can use the rule of 69.3 to estimate that it will take about 13.9 years for your investment to double in value (69.3 divided by 5 equals 13.9).

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The rule of 69.3 is also not an exact formula, but it can give you a good estimate of how long it will take for your investment to double in value when the interest rate is compounded continuously.

## In Conclusion

In conclusion, the rule of 72, the rule of 70 and the rule of 69.3 are methods for estimating an investment’s doubling time. These rules can give you a good estimate of how long it will take for your investment to double in value, but they are not exact formulas. It is important to remember that investments can be unpredictable and there are many factors that can affect their performance. However, by using these rules, you can make informed decisions about your investments and plan for your financial future.