Investing
Rule of 72
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Knowledge gives you choices.
By knowing what the Rule of 72 is about, you are giving yourself the knowledge to make decisions regarding your personal finances. Knowing whether you want to see your money double in 3 years or 18 years will help you figure out what kind of annual return you will need.
Keeping a Rule of 72 chart handy in your investment folder will help you know what to expect when you are researching investment opportunities. There are many kinds of opportunities ranging from Certificate of Deposits to commodities. An annual interest rate of 4 percent or 28 percent will be an important factor in determining your investment horizon should you desire to see your original investment returned to you sooner than later.