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How do you use the Rule of 70? - Answers
The Rule of 70 is a simple formula used to estimate the number of years it will take for an investment to double in value, given a fixed annual rate of return. You divide 70 by the annual percentage growth rate (e.g., if the growth rate is 7%, it would take approximately 70/7 = 10 years to double). This rule provides a quick way to gauge the effects of compound interest without complex calculations. It’s particularly useful in finance and economics for evaluating growth rates of investments, populations, or economies.
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How do you use the Rule of 70? - Answers
The Rule of 70 is a simple formula used to estimate the number of years it will take for an investment to double in value, given a fixed annual rate of return. You divide 70 by the annual percentage growth rate (e.g., if the growth rate is 7%, it would take approximately 70/7 = 10 years to double). This rule provides a quick way to gauge the effects of compound interest without complex calculations. It’s particularly useful in finance and economics for evaluating growth rates of investments, populations, or economies.
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How do you use the Rule of 70? - Answers
The Rule of 70 is a simple formula used to estimate the number of years it will take for an investment to double in value, given a fixed annual rate of return. You divide 70 by the annual percentage growth rate (e.g., if the growth rate is 7%, it would take approximately 70/7 = 10 years to double). This rule provides a quick way to gauge the effects of compound interest without complex calculations. It’s particularly useful in finance and economics for evaluating growth rates of investments, populations, or economies.
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