Will investing Rs 1 lakh each year be enough for your future goals? How rule of 72 and rule of 114 help you figure it out easily
To understand the rule of 72 formula, you need to divide 72 by the expected annual rate of return. For example, say you invest Rs 1 lakh every year in an investment that earns 8% interest annually. Now if you divide 72 by 8, you will get 9 which gives you the number of years it will take for your money to double. So, your investment will grow to Rs 2 lakh in nine years.
Source: indiatimes.com
