Quick Peek:
Looking to invest your money and wondering how long it will take to double? The rule of 69 can give you a quick estimate, but to be more precise, add 0.35 to the result. For example, if you invest in a bank FD with a 5% rate of return, your money will double in approximately 14.15 years. Keep in mind that the rule of 69 is based on logarithms and is only applicable for compound interest. So, don’t forget to add that extra 0.35 for a more accurate outcome.
To Get a More Precise Outcome, We Should Add 0.35 to the Result
Investing money is a great way to make your money work for you. But before you invest, it’s important to understand how long it will take for your investment to double. The rule of 69 is a quick and easy way to calculate this. However, to get a more precise outcome, we should add 0.35 to the result.
Let’s take an example. Say a person wants to invest in a bank FD (fixed deposit), which gives a rate of return of 5%. Using the rule of 69, we can calculate that the amount will double in (69/5) or 13.8 years. However, to get a more precise outcome, we should add 0.35 to the result. So, in this case, the amount will double in ((69 / 5) + 0.35) or 14.15 years.
But why do we need to add 0.35 to the result? The rule of 69 is based on logarithms, which are not always accurate. Adding 0.35 to the result compensates for this inaccuracy and gives us a more precise outcome.
It’s important to note that this rule is only applicable for compound interest. If you’re investing in something that offers simple interest, the rule of 72 should be used instead.
In conclusion, the rule of 69 is a quick and easy way to calculate how long it will take for your investment to double. However, to get a more precise outcome, we should add 0.35 to the result. This compensates for the inaccuracy of logarithms and gives us a more accurate result. Keep in mind that this rule is only applicable for compound interest and not for simple interest.
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