Value for money scheme: Investment will double in 5 years, just select this scheme..

Rule 72 is an important formula in the world of investment, which tells how much time it will take for an amount to double. This formula helps investors to make quick and easy estimates. Apart from this, Rule 114 and Rule 144 are also important, which tell the time taken for an investment to triple and quadruple respectively.

Rule of 72: Time taken for money to double

According to the Rule of 72, 72 is divided by the interest rate to find the number of years taken for an investment to double. Example: If your investment plan gives an 8% annual return, then the time taken for your money to double will be:

72 ÷ 8 = 9 years

Rule of 114: Time is taken for money to triple

Similarly, if you want to know in how many years your money will triple, then divide 114 by the interest rate.

Example: If the interest rate is 8%, your investment will triple in: 114 ÷ 8 = 14.25 years Rule of 144: Time for money to quadruple

If you want to know when the investment will quadruple, divide 144 by the interest rate. Example: If the interest rate is 8%, it will take 144 ÷ 8 = 18 years to quadruple.

How to plan your investment correctly?

If you want to double your money in 5 years, you need an interest rate of 72 ÷ 5 = 14.4%. To earn interest at this rate, you can invest in mutual funds or the stock market. Similarly, to triple your money in 10 years, you need an interest rate of 114 ÷ 10 = 11.4%.

The Rule of 72, 114, and 144 are very helpful for easy and effective calculations in the world of finance. However, this is an approximate method and the actual returns depend on the market conditions. It would be better to make decisions keeping these rules in mind to make a correct investment plan. You can double your money in this way.

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