Rule 72 is a simple way to calculate the number of years it takes to double the amount of capital invested.
Example:
If you invest RM10,000 at an interest rate of return of 10%, it takes roughly 7.2 years for the capital invested to double to RM20,000.00. Calculated as : 72/ interest rate (10%). Try using you calculator and multiply RM10,000 by 1.10 for 7 times. The answer is RM19,487.17.
Happy investing.
1 comment:
great tip
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