Rules of compounding

For understand rules of compounding you should have to familiar with division.

Rules of compounding:

1. Rule of 72

2. Rule of 144

3. Rule of 114

1. Rule of 72:

The Rule of 72 can give you an idea of how many doubles you'll get in your lifetime.

Formula:

72/(interest rate)

For example:

1%, it will take (72 / 1 = 72) years for your money to doubles. 

6%, it will take (72 / 6 = 12) years for your money to doubles.

12%, it will take  (72 / 12 = 6) years for your money to doubles. 

2. Rule of 114:

Rule of 114 can be used to determine how long it will take an investment to tripled. 

Formula:

114/(interest rate)

For example,

at 10% investment will

triple in about (114 / 10 = 11) years

3. Rule of 144:

Rule of 144 will tell you how long it will take an investment to four times.

For example,

at 10% investment:

Your investment Four times in about  (144 /10 = 14.5)years

- Kanan Gandhi

- Unnati Gandhi