What is the rule of 70 in investing?



What is the rule of 70 in investing?

The rule of 70 is a calculation to determine how many years it’ll take for your money to double given a specified rate of return. Investors can use the rule of 70 to evaluate various investments including mutual fund returns and the growth rate for a retirement portfolio.

What is the rule of 72 in investing?

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself. How the Rule of 72 Works

What is the 78 rule in finance?

Key Takeaways. The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 allocates pre-calculated interest charges that favor the lender over the borrower for short-term loans or if a loan is paid off early.