What is the 69 70 72 rule?

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By Nick

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Want to know how long it will take for your investment to double? Look no further than the rule of 72, which states that dividing 72 by your interest rate will give you the number of years it will take for your money to double. But did you know there are similar formulas, like the rule of 70 and the rule of 69, that can also estimate this time frame? While the rule of 72 predicts doubling in 24 years, the rule of 70 and rule of 69 offer slightly different results at 23.3 and 23 years, respectively.

What is the 69 70 72 rule?

If you’re an investor, you’ve probably heard of the rule of 72, which is a quick and easy way to estimate how long it will take for your money to double. But have you heard of the rule of 70 or the rule of 69? These are similar formulas that can help you calculate the same thing, but with slightly different results.

The rule of 72

Let’s start with the most well-known formula: the rule of 72. This rule states that if you divide the number 72 by the interest rate you’re earning on your investment, the result will be the number of years it will take for your money to double.

For example, if you’re earning a 6% annual return on your investment, you would divide 72 by 6 to get 12. This means it would take approximately 12 years for your money to double.

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The rule of 70

The rule of 70 is very similar to the rule of 72, but it uses the number 70 instead. This formula is often used in situations where the interest rate is not a whole number.

To use the rule of 70, you simply divide 70 by the interest rate to get the number of years it will take for your money to double.

For example, if you’re earning a 7.5% annual return on your investment, you would divide 70 by 7.5 to get 9.33. This means it would take approximately 9.33 years for your money to double.

The rule of 69

Finally, we have the rule of 69. This formula is very similar to the rule of 70, but it uses the number 69 instead. This formula is often used in situations where the interest rate is a whole number.

To use the rule of 69, you simply divide 69 by the interest rate to get the number of years it will take for your money to double.

For example, if you’re earning a 6% annual return on your investment, you would divide 69 by 6 to get 11.5. This means it would take approximately 11.5 years for your money to double.

Conclusion

In conclusion, the rule of 72, the rule of 70, and the rule of 69 are all useful formulas for estimating how long it will take for your money to double. While the results may vary slightly, they all provide a quick and easy way to get a rough estimate. As an investor, it’s important to understand these formulas so you can make informed decisions about your investments.

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