Very few investors know how long it takes to double their money. Rule of 72 can be of help. Divide 72 by the expected rate of return and the answer is the number of years required to double your money. For example, if a bond offers 6 percent rate of interest per year, then you will double your money in 12 years. The rule of 72 has limitations though. In the real world, the expected rate of return may vary. The calculation does not take into account cost of investing and impact of taxes. Do not ignore risks involved and pick high return investments in a hurry to double your money.
