Financial Planning: In how many days will your money double, you can find out from rule number 72..

Every investor wants to create a fund for different purposes, whether it is saving money for children's education, making a retirement plan, or dreaming of buying a house; a big fund is needed for these. In such a situation, investors dream that their money keeps growing safely and doubles one day.

Loss of 18.5 lakhs
But the biggest question is how much time it takes to create a good fund. Everyone likes to know that the money invested today will double by when it will double. Let us tell you that you can find out by when your money will double through the formula of Rule No. 72.

What is Rule No. 72?
This is an easy formula that tells how many years an investment will take to double. Just for this you have to adopt a formula. You just have to divide your annual interest rate by 72. The formula is as follows: 72 ÷ interest rate = years taken for money to double

This formula is especially accurate when the interest rate is between 6% and 10%, but you can use it for almost any return. The most important thing about this formula is that it applies to every type of investment. Through this formula, you can find out the time taken to double the money from investment options like fixed deposits, public provident fund, mutual funds or equity stock market.

Applies not only to investments, but also to inflation and GDP
This rule is not only used for investments, but also for estimating inflation and GDP growth. For example, if the inflation rate is 6%, then your spending capacity can be halved in 12 years. This formula is also beneficial for planning investments.

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