Ch.1 · Savings vs Investment Avenues · medium
An investor puts ₹1,00,000 in a scheme earning 10% per annum compounded annually. What will be the approximate value after 7 years using the Rule of 72?
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EXPLANATION
The Rule of 72 states that money doubles in approximately 72 ÷ rate of return years. At 10%, doubling time = 72 ÷ 10 = 7.2 years. So ₹1,00,000 approximately doubles to ₹2,00,000 in ~7 years.
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