New Delhi: Are you planning to invest or in a pension scheme, fixed deposits (FDs) or mutual funds and worried about how much time will it take to double your investment, then you are at the right place.
In India, there are several investment options available that can double your investment in no time. However, some investment options are safer than others while other safer options take a bit longer in doubling your investment.
You can easily calculate the time period required to doubling your money by simply following the ‘Rule of 72’. The rule is actually quite simple and anyone can find out the time period needed to double the investment in a snap.
What is the Rule of 72?
The Rule of 72 is just a very simple mathematical formula. All you need to do is divide the interest rate by 72 to find out the time period required for doubling your investment. Also Read: IRCTC Package: Visit Mata Vaishno Devi in budget with Indian Railways, check details
Here’s the formula for Rule of 72:
Time required to double money = 72/Interest rate offered by the scheme
Here’s an example:
If you’re investing Rs 1 lakh in National Pension Scheme (NPS) and getting a 9% interest rate, then here’s how you can calculate the time period required for your money to get double:
Time period = 72/9 = 8 years.
So, by now, you must have clearly understood the process to calculate the time frame required to double your money. You can use the same formula to calculate the time period for other investment schemes as well. Also Read: Apple introduces special offer for Indians! Now, get 20% bonus on adding money to Apple ID