The rule of 72 investors is a very fundamental concept in the stock market and one of the popular stock market facts. This rule is used by investors to calculate the time required to double the investment. If the fixed rate of annual interest is known you can determine the time required for the investment to become double. Let us understand this share market fact with an example. Let us consider an investor who has invested Rs 5,00,000 and the interest rate is 8%, using the rule of 72 the time required to double the investment will be 72/8=9 years.
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